Exxon Does It Again - Three More Discoveries Offshore Guyana

Exxon Does It Again - Three More Discoveries Offshore Guyana
Exxon has made three discoveries offshore Guyana and increased its recoverable resource estimate for Stabroek to nearly 11 billion oil-equivalent barrels.

U.S. oil supermajor ExxonMobil has made three new discoveries offshore Guyana and increased its estimate of the recoverable resource for the Stabroek Block to nearly 11 billion oil-equivalent barrels.

Exxon said that the three discoveries – Barreleye-1, Patwa-1, and Lukanani-1 – were southeast of the Liza and Payara developments and bring the number of Exxon’s Guyana discoveries in 2022 to five.

The Barreleye-1 well encountered approximately 230 feet of hydrocarbon-bearing sandstone and was drilled in 3,840 feet. Drilling at Patwa-1 encountered 108 feet of hydrocarbon-bearing sandstone and was conducted in 6,315 feet of water. The Lukanani-1 well encountered 115 feet of hydrocarbon-bearing sandstone and was drilled at a water depth of 4,068 feet. Operations are still ongoing at Barreleye-1 and Lukanani-1.

“These discoveries and the updated resource estimate increase the confidence we have in our ambitious exploration strategy for the Stabroek Block and will help to inform our future development plans for the southeast part of the block,” said Liam Mallon, president of ExxonMobil Upstream Company.

“ExxonMobil remains committed to delivering value at an accelerated pace to the people of Guyana, our partners, and shareholders and reliably supplying affordable energy to meet increasing demand around the world,” Mallon added.

ExxonMobil currently has four sanctioned projects offshore Guyana. Liza Phase 1 is producing approximately 130,000 barrels per day using the Liza Destiny FPSO vessel.

Liza Phase 2, which started production in February, is steadily ramping up to its capacity of 220,000 barrels per day using the Liza Unity FPSO.

The third project, Payara, is expected to produce 220,000 barrels per day. Construction on its production vessel, the Prosperity FPSO, is running approximately five months ahead of schedule with start-up likely before year-end 2023.

The fourth project, Yellowtail, is expected to produce 250,000 barrels per day when the One Guyana FPSO comes online in 2025.

At least six FPSOs with a production capacity of more than 1 million gross barrels of oil per day are expected to be online on the Stabroek Block in 2027, with the potential for up to 10 FPSOs to develop gross discovered recoverable resources.

In a separate statement, the CEO of Exxon’s Stabroek partner Hess, John Hess, said: “These new discoveries further demonstrate the extraordinary resource density of the Stabroek Block and will underpin our queue of future development opportunities. We look forward to continuing to work with the Government of Guyana and our partners to realize the remarkable potential of this world-class resource for the benefit of all stakeholders.”

Guyana’s Stabroek Block is 6.6 million acres. ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the operator and holds a 45 percent interest in the Block. Hess Guyana Exploration holds 30 percent interest while CNOOC Petroleum Guyana Limited holds the remaining 25 percent.

To contact the author, email bojan.lepic@rigzone.com


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