Guyana moves one step closer toward oil production with the arrival of another drillship, the Stena Forth, which is expected to commence exploration offshore at the Orinduik Block.
Earlier this month, oil and gas exploration company, Tullow Oil, had announced the commencement of its search for oil at the Orinduik Block.
The Stena Forth drillship
This operation was possible with the use of the Offshore Support Vessel (OSV) Pacific Leader. As such, the Maritime Department had alerted nearby vessels that the ship would be emitting international signals.
This drilling exercise will run until December 31 of this year and the oil company is expected to drill about 82 nautical miles from the coast of Guyana and cover an area of 848 square kilometres.
In another notice, the department explained that the company also commenced drilling in the Jethro-1 well site within the Orinduik Block. For this operation, the Mobile Offshore Drilling Unit, the newly arrived Stena Forth was sourced.
Its drill site is about 95 nautical miles from Guyana’s coast and will cover an area of one square kilometre, bounded by other coordinates. The oil company first inked its interest into Guyana during the second quarter of 2013.
In February 2019, Tullow had announced that it was bringing forward its drilling programme from the previously scheduled end of the year to the second quarter. It had announced that the Jethro prospect would be drilled in June. So far, plans have been announced to drill three wells here, namely the Jethro-Lobe, Joe and Carapa.
Tullow’s partner in the Orinduik Block, Eco Atlantic, had announced that drilling on the Joe prospect will begin in mid-July of this year. They had announced that the Stena Forth drillship will move directly to the Joe after it finishes drilling the Jethro-Lobe well in the Orinduik Block. It is understood that the Joe is located in approximately 650 metres of water and will cost Eco Atlantic approximately US$3 million to drill. A recently published report from international company Gustavson Associates had estimated that the well has a 43.2 per cent chance of success.
Tullow’s Head of Communications George Cazenove told the Guyana Times that jobs will be provided for the Guyanese populace.
“Shared prosperity includes a firm commitment to local content… Tullow has made significant efforts in both East and West Africa to make sure that local companies, particularly small and medium-sized enterprises, are involved in the supply chain in the oil and gas developments we are involved with,” he was quoted as saying.
Meanwhile, oil-giant Exxon Mobil has deployed four drillships for exploration purposes, where 13 massive discoveries were made. The fleet comprises the Stena Carron—which is working at the Longtail 1 discovery, the Noble Bob Douglas at the Liza Phase 1, the Noble Tom Madden at the Yellowtail Well, and Noble Don Taylor.
ExxonMobil said there is potential for at least five Floating Productions, Storage and Offloading (FPSO) vessels on the Stabroek Block, producing more than 750,000 barrels of oil per day by 2025.
The start-up of the Liza Phase 1 development is on track to begin by the first quarter of 2020 and will produce up to 120,000 barrels of oil per day utilising the Liza Destiny FPSO, which is expected to arrive in the country in the third quarter.
Liza Phase 2 is expected to start up by mid-2022. A final investment decision is expected soon, subject to Government and regulatory approvals. Upon approval, the project plans to use the Liza Unity FPSO to produce up to 220,000 barrels per day. Sanctioning of a third development, Payara, is also expected in 2019, with start-up projected for 2023.
The Stabroek Block is 6.6 million acres (26,800 square kilometres). ExxonMobil affiliate, Esso Exploration and Production Guyana Limited, is operator and holds 45 per cent interest in the Stabroek Block. Hess Guyana Exploration Limited holds 30 per cent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 per cent interest.
