Exxon to drill new well

ESSO Exploration and Production Guyana Ltd (EEPGL)-a subsidiary of US oil firm ExxonMobil, will commence a three-month drilling programme at the Pacora-1 Well, within the Stabroek Block at the end of this month, the Maritime Administration Department has said.

MARAD in a notice said that the operation will incorporate the use of: Sterna Carron; MV Cat Island; MV Hannah Chouest; HOS Commander and MV Dante. “The drill site is approximately 107 nautical miles from the coast of Guyana and covers an area of one square kilomentre,” MARAD said.

The notice of this new drilling operations comes days after ExxonMobil announced its sixth oil discovery offshore Guyana, adding to its previous world-class discoveries since 2015. According to a release from the company, its Ranger-1 well encountered an approximate 230-ft high-quality, oil-bearing reservoir some 60 miles northwest of its Liza Phase One project within the Stabroek Block. Exxon said that the new discovery provides a new play concept for the 6.6 million acre Stabroek Block. Government later said it was gratified by the news.

“The news of an additional find of this magnitude, particularly at the start of the new year, can be seen as a further blessing, and underscores the richness and diversity of Guyana’s natural resources,” the government said through the Department of Public Information (DPI).

According to Exxon, the Ranger-1 well discovery adds to previous world-class discoveries at Liza, Payara, Snoek, Liza Deep and Turbot, which are estimated to total more than 3.2 billion recoverable oil-equivalent barrels. The company said that its affiliate, Esso, began drilling the Ranger-1 well on November 5, 2017 and encountered approximately 230 feet (70 meters) of high-quality, oil-bearing carbonate reservoir.

The well was safely drilled to a depth of 21,161 feet (6,450 meters) in 8,973 feet (2,735 meters) of water. “This latest success operating in Guyana’s significant water depths illustrates our ultra-deepwater and carbonate exploration capabilities,” said Steve Greenlee, president of ExxonMobil Exploration Company.

“This discovery proves a new play concept for the 6.6 million acre Stabroek Block, and adds further value to our growing Guyana portfolio,” Greenlee added. Following completion of the Ranger-1 well, the Stena Carron drill-ship will move to the Pacora prospect, 4 miles from the previous Payara discovery.

Exxon said that additional exploration drilling is planned for the Stabroek Block for 2018, including potential appraisal drilling at the Ranger discovery. Meanwhile, the government has noted that the Ministry of Natural Resources (MNR) is particularly pleased that its strategy of engagement with Esso Exploration/CNOOC/Hess and its partners is leading to bountiful discoveries.

Overall, the government expressed elation that Esso Exploration/CNOOC/Hess remain ahead of their exploration schedule for the entire Stabroek block. The MNR expects that other international operators will draw confidence from Esso Exploration/CNOOC/Hess’s presence and the six oil discoveries and will diligently pursue their own exploratory work programmes.

Several companies have advanced their seismic data collection and are expected to drill in 2018, the DPI release stated. The government called on all stakeholders to act responsibly and patriotically as Guyana continues its thrust into this new sector and as news and events continue to unfold about the extent of the oil reserves offshore and the manifold opportunities and benefits for the Guyanese people.

Late in December, the government released the full petroleum agreement with ExxonMobil at a high-level forum held at the Ministry of the Presidency. During presentation on the contract, it was disclosed that Guyana stands to gain some US$7B over a 20-year period from the LIZA Phase One well alone.

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