Majors Continue To Strike More Oil Offshore Guyana

  • Sep 17, 2019
  • Investing

ExxonMobil has made another oil discovery offshore Guyana, adding to a previously estimated recoverable resource of more than 6 billion oil-equivalent barrels on the Stabroek Block, just a few months before it begins oil production from the Liza Phase 1 development.

Exxon encountered a high-quality oil-bearing sandstone reservoir in the Tripletail-1 well in the Turbot area on the Stabroek Block, the U.S. supermajor said in a statement.

“Together with our partners, ExxonMobil is deploying industry-leading capabilities to identify projects that can be developed efficiently and in a cost-effective way,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil.

ExxonMobil has made more than a dozen oil discoveries offshore Guyana, which is the supermajor’s key development priority in the coming years together with significantly boosting shale production in the Permian basin.

Exxon’s discovery also comes a few months before the start up of the

Liza Phase 1 development expected by early 2020. Liza Phase 1 will produce up to 120,000 bpd via the Liza Destiny floating production storage and offloading (FPSO). Exxon has also approved the Liza Phase 2 development, which is expected to begin production of up to 220,000 bpd by the middle of 2022. A third development, Payara, could begin pumping oil as soon as 2023, subject to government approvals, Exxon said.

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While Exxon has been the undisputed leader in exploration success in the newest offshore hot spot, other oil companies have also had exploration success recently.Tullow Oil announced last month an oil discovery on the Orinduik license, and said this week that it had made another oil discovery on the same license.

“I am very pleased that we have made back-to-back discoveries in Guyana and successfully opened a new, shallower play in the Upper Tertiary age of the Guyana basin with our second well,” Angus McCoss, Exploration Director at Tullow Oil, said in a statement on Monday.

“The Joe-1 discovery and its surrounding prospects represent another area of significant potential in the Orinduik Block and we are greatly looking forward to the next phase of the programme as we continue to unlock the multi-billion barrel potential of this acreage,” McCoss said.