ExxonMobil 'Puts Guyana on the Map' with Discovery

ExxonMobil 'Puts Guyana on the Map' with Discovery
Could ExxonMobil attain 2 billion-barrel oil reserves mark offshore Guyana?

Exxon Mobil Corp. on Thursday reported its fifth new oil discovery after drilling the Turbot-1 well offshore Guyana with the Stena Carron drillship.

“The results from this latest well further illustrate the tremendous potential we see from our exploration activities offshore Guyana,” ExxonMobil Exploration Co. President Steve Greenlee said in a company announcement. “ExxonMobil, along with its partners, will continue to further evaluate opportunities on the Stabroek Block.”

According to ExxonMobil, Turbot is the latest in a string of discoveries in Guyana. Previous discoveries in the South American country include Liza, Payara, Snoek and Liza Deep. The company said that its affiliate Esso Exploration and Production Guyana Ltd. began drilling Turbot-1 on Aug. 14, 2017, and encountered a reservoir of 75 feet (23 meters) of high-quality, oil-bearing sandstone in the primary objective.

According to Wood Mackenzie, the Turbot-1 discovery “puts Guyana on the map” because the country currently produces no oil.

“ExxonMobil continues with its successful exploration campaign offshore Guyana with the discovery of Turbot,” said Pablo Medina, Wood Mackenzie’s senior analyst, Latin America Upstream. “This shows that deepwater can still be attractive. After today’s announcement, ExxonMobil’s Liza and Payara complex might approach the 2 billion barrel mark in commercial reserves.”

Wood Mackenzie expects Guyana to be one of Latin America’s top oil producers by 2026 with approximately 350,000 to 400,000 barrels per day of oil production, noted Medina.

“ExxonMobil’s Latin America footprint has increased significantly with its recent stream of discoveries in Guyana and its aggressive bidding in Brazil’s latest licensing round,” Medina said.

Turbot-1 is located in the southeastern portion of the Stabroek Block roughly 30 miles (50 kilometers) southeast of the Liza phase one project, ExxonMobil stated. Esso Exploration and Production Guyana Ltd. operates the 6.6 million-acre (26,800-square kilometer) Stabroek Block and holds a 45-percent interest in it. Others holding stakes in the acreage include Hess Guyana Exploration Ltd. (30 percent) and CNOOC Nexen Petroleum Guyana Ltd. (25 percent).

ExxonMobil also noted the Stena Carron will move to the Ranger prospect. The company added that it plans to drill an additional well on the Turbot discovery next year.


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