Exxon Strikes More Oil Offshore Guyana

Exxon Strikes More Oil Offshore Guyana
ExxonMobil reported another oil discovery in the Stabroek Block offshore Guyana.

Exxon Mobil Corp. (NYSE: XOM) on Tuesday reported another oil discovery in the Stabroek Block offshore Guyana.

Located some 6.8 miles (11 kilometers) south of the Uaru-1 well, the most recent Uaru-2 well encountered approximately 120 feet (36.7 meters) of high-quality oil-bearing sandstone reservoir that includes newly identified intervals below Uaru-1, ExxonMobil noted in a written statement emailed to Rigzone. The company noted the latest discovery augments Stabroek’s previous recoverable resource estimate of approximately 9 billion barrels of oil equivalent.

“The Uaru-2 discovery enhances our work to optimally sequence development opportunities in the Stabroek Block,” remarked Mike Cousins, ExxonMobil’s senior vice president of exploration and new ventures. “Progressing our industry-leading investments and well-executed exploration plans are vital in order to continue to develop Guyana’s offshore resources that unlock additional value for the people of Guyana and all stakeholders.”

ExxonMobil affiliate Esso Exploration and Production Guyana Limited operates the Stabroek projects and owns a 45% interest in the block. Other stakeholders include Hess Guyana Exploration Ltd. (NYSE: HES) (30%) and CNOOC Petroleum Guyana Limited (HKG: 0883) (25%).

“We expect to have at least six FPSOs on the Stabroek Block by 2027, with the potential for up to 10 FPSOs to develop the current discovered recoverable resource base,” commented Hess CEO John Hess in a separate written statement.

The Stabroek partners also issued the following updates Tuesday:

  • The Liza Destiny FPSO hit its nameplate production capacity of 120,000 gross barrels of oil per day in December 2020 and remained at that level until the middle of this month, when a minor leak in the flash gas compressor silencer caused output to be curtailed for several days. Production has since been ramped back up to the 100,000-110,000 gross barrels of oil per day range and should return to or above nameplate capacity after repairs conclude in approximately three months.
  • The production startup for Liza Phase 2 with the Liza Unity FPSO remains on track for early next year, with output capacity of approximately 220,000 gross barrels of oil per day.
  • First oil from a third development, the Payara field, is projected for 2024. The hull for the Prosperity FPSO, which will operate at Payara, is complete and topsides construction is underway in Singapore. The FPSO’s production capacity will be 220,000 gross barrels of oil per day.
  • ExxonMobil secured the Noble Sam Croft – the sixth drillship offshore Guyana – March 2021 for exploration and evaluation drilling.
  • Pending government approvals and sanctioning, the Stabroek partners anticipate a 2025 startup for a fourth development: Yellowtail. They pointed out the Yellowtail project calls for developing the Yellowtail and Redtail fields, which are some 19 miles (30 kilometers) southeast of the Liza developments.
  • More than 2,300 Guyanese now provide on and offshore support for the Stabroek partners’ project activities – up more than 20% since late-2019.

To contact the author, email mveazey@rigzone.com.


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