– Guyana discoveries major influence

RYSTAD Energy has once again named ExxonMobil ‘Explorer of the Year,’ crediting its rise to the top primarily to its successive and successful discoveries offshore Guyana.

A recent publication by the Norwegian research company, indicated that the world’s oil and gas explorers had together discovered 12.2 billion barrels of oil equivalent (boe) in 2019 with the discoveries in Guyana estimated at 1.8 billion boe cumulative.

Rystad Energy noted that Guyana’s success story from 2018 continued in 2019, with ExxonMobil adding four new discoveries within its offshore Stabroek Block.

“ExxonMobil can be declared explorer of the year for a second year in a row, thanks to its ongoing efforts and results in Guyana, along with significant investments in Cyprus. The super major was exceptional, both in terms of discovered volumes and value creation from exploration,” Senior Analyst on Rystad Energy’s upstream team, Palzor Shenga said.

The 12.2 boe realised in 2019 is the highest since 2015 with 26 discoveries of more than 100 million boe in more offshore than onshore regions.

ExxonMobil discovered around 1.07 billion boe in additional net resources last year, which Rystad Energy estimates to be around $U.S.2.7 billion in value creation, largely driven by continued success in Guyana.

ExxonMobil made five discoveries in the Stabroek Block in 2019 at the Tilapia- 1 well; Haimara- 1 well; Yellowtail- 1 well; Tripletail- 1 well and the Mako- 1 well. The most recent discovery brings the total to 15 for the U.S. oil giant.

Meanwhile, Rystad Energy noted that Tullow Oil’s Jethro and Joe exploration wells established the presence of a working petroleum system, west of the Stabroek Block.

Other key offshore discoveries highlighted for 2019 were Total’s Brulpadda in South Africa; ExxonMobil’s Glaucus in Cyprus; CNOOC’s Glengorm in the United Kingdom (UK) and Equinor’s Sputnik in the Norwegian sector of the Barents Sea.

“U.S. independent Hess and Chinese state player CNOOC occupy the second and the third spots on the list of top explorers of 2019 in terms of value creation from new discoveries, with both benefitting from their partnership with ExxonMobil in Guyana’s Stabroek Block. Hess added about $2 billion in value from new discoveries last year, while CNOOC had value creation of about $1.8 billion,” Rystad Energy stated.

Back in 2019, when ExxonMobil estimated its third-quarter earnings at $3.2B, the corporation also noted that its value position in Guyana had increased and that it was considering its undrilled potential.

“We are making excellent progress on our long-term growth strategy,” ExxonMobil Chairman and Chief Executive Officer (CEO), Darren W. Woods said during a presentation.

Meanwhile, in December 2019, just weeks before first oil, the company’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), applied to the Environmental Protection Agency (EPA) for authorisation to explore 31 wells in three oil blocks offshore Guyana.

The projects include a 25-well exploration programme in the Stabroek Block; a three-well exploration programme in the Kaieteur Block and a three-well exploration programme in the Canje Block as success continues in Guyana