EXXONMOBIL’S partner Hess Corporation, during its third-quarter earnings on Wednesday revealed that the Liza-3 well located in the Stabroek Block, offshore Guyana has a world-class oil discovery. According to the company’s website, there are estimated recoverable resources for Liza now expected to be at the upper end of the previously announced range of 800M to 1.4B barrels of oil equivalent.
“The Liza-3 appraisal well on the Stabroek Block (Hess 30 percent), operated by Esso Exploration and Production Guyana Limited, was successfully completed. Based on the Liza-3 results, we now expect the estimated recoverable resources to be at the upper end of the previously announced range of 800 million to 1.4 billion barrels of oil equivalent.”
Earlier this year, the SkipJack exploration well was drilled some 25 miles north-west of the Liza discovery and came up dry. “We also are investing in growth projects, including the world-class Liza oil discovery in Guyana that we believe will create significant value for our shareholders. Based on the positive results of the Liza-3 well, we now expect Liza to be at the upper end of the previously announced estimated recoverable resources range of 800 million to 1.4 billion barrels of oil equivalent,” Chief Executive Officer, John Hess, stated in his report.
When contacted on Thursday, ExxonMobil’s Senior Director, Public and Government Affairs, Kimberly Brasington, told the Guyana Chronicle that the reports of one of Exxon’s partners at their earnings made comments relative to the Liza 3, but stated that “Exxon doesn’t have anything to add on that, at the moment.”
She disclosed however that ExxonMobil will have its earnings disclosed today and subsequent to that, the information will be made available. “Our partner has gone out and said something on their earning calls…” Brasington added. She reminded that the Liza 1 was the first well drilled followed by Liza 2 where a significant discovery was announced. Shortly after, the SkipJack, located in a different field was drilled and that came up dry.
“We are trying to understand what is the size of resource… [it is] information-gathering for ExxonMobil—[and it is] ongoing now,” added the senior director. In June, ExxonMobil announced that the Liza-2 well during the company’s second exploration discovered more than 190 feet (58 metres) of oil-bearing sandstone reservoirs in upper-cretaceous formations. That well was drilled to 17,963 feet (5,475 metres) in 5,551 feet (1,692 metres) of water. The Stabroek Block is 6.6 million acres (26,800 sq kms). Esso Exploration and Production Guyana is operator and holds 45 percent interest in the Stabroek block. Hess Guyana Exploration holds 30 percent interest and CNOOC Nexen Petroleum Guyana holds 25 percent interest.