– ‘Exxon’ confirms ‘
JUST as it anticipated, ExxonMobil said Monday that now that all the figures have come in, it looks like the Stabroek Block is likely to yield more than 4 billion barrels of oil equivalent (BOE) after all.
Today we increased our estimate of the discovered recoverable resources for Stabroek Block offshore Guyana to more than 4 billion oil-equivalent barrels. https://t.co/lwuicaanNh pic.twitter.com/oequ0mAlrb
— ExxonMobil (@exxonmobil) July 23, 2018
The US oil giant has also advanced its evaluation to support a third phase of development and consideration of two additional phases.
As is only to be expected, Minister of Natural Resources Raphael Trotman is ecstatic. “Confidence and investor interest in Guyana will continue to grow as a result of this most recent and exciting announcement by ExxonMobil,” he said, adding:
“The good news continues to flow for the people of Guyana and for future generations. Citizens can be assured that the management of the oil-and- gas industry is in prudent and capable hands, who will take the time and solicit the expertise needed in ensuring that all aspects of this industry is managed in the best interest of the people of Guyana.”
The increase from an estimated 3.2B BOE follows completion of testing at the Liza-5 appraisal well; a discovery at Ranger; incorporation of the eighth discovery, Longtail, into the Turbot area evaluation; and completion of the Pacora discovery evaluation.
“Outstanding resource quality across these opportunities combined with industry-leading project execution capabilities will provide great value to resource owners, partners and our shareholders,” Exxon Senior Vice-President Neil Chapman was quoted as saying.
“Continued success in Guyana, and progress in other upstream growth projects in the U.S. Permian Basin, Mozambique, Papua New Guinea and Brazil are giving us additional confidence in achieving our long-term earnings growth plans that we outlined in March,” he added.
Guyana’s first development, Liza Phase 1, Chapman said, will use a floating production, storage and offloading (FPSO) vessel to produce 120,000 barrels of oil per day (BPD), starting by early 2020. The Liza Phase 2, on the other hand, which is targetted for sanctioning by the end of this year, will use an FPSO vessel designed to produce up to 220,000 BPD, and is expected to be producing by mid-2022.
Word is that the Liza-5 well successfully tested the northern portion of the Liza field and, along with the giant Payara field, will support a third phase of development in Guyana.
The Payara development will target sanctioning in 2019, and use an FPSO vessel designed to produce approximately 180,000 BPD as early as 2023.
Meanwhile, the Longtail well has established the Turbot-Longtail area as a potential development hub for the recovery of more than 500 million BOE. Additional prospects to be drilled in this area could increase this estimate.
The collective discoveries on the Stabroek Block to date have established the potential for up to five FPSOs producing over 750,000 BPD by 2025.
There is potential, too, for additional production from significant undrilled targets, and plans for rapid exploration and appraisal drilling, including at the Ranger discovery.
SHARED INTEREST
The Stabroek Block is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate, Esso Exploration and Production Guyana Limited, is the operator, and has a 45 per cent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.
ExxonMobil, the largest publicly traded international energy company, uses technology and innovation to help meet the world’s growing energy needs. It holds an industry-leading inventory of resources; is one of the largest refiners and marketers of petroleum products; and its chemical company is one of the largest in the world.
The Guyana Government is reportedly excited about the announcement from ExxonMobil and its partners, Hess Guyana and CNOOC Nexen Petroleum, of the increase in the estimate for the Stabroek Block from 3.2B a few days ago to over 4B BOE.
ExxonMobil has made eight discoveries in Guyana’s waters to date, namely: Liza, Payara, Liza Deep, Snoek, Turbot, Ranger, Pacora and Longtail.
Production is expected to commence in the first quarter of 2020 with an estimated 120,000 BPD, with an estimated increase to 220,000 BPD by 2022.
As Minister Trotman observed, “We understand the anxieties and concerns of persons both in wanting to see the revenues to be derived allocated now, and the judicious management of the oil wealth.
“We are confident that this government will not take any action to either fritter away or mismanage these revenues; they belong to the people of Guyana, and it is the people who must benefit first and foremost.”
The Department of Energy, which is imminently being established, will continue the work for the efficient development of the resources on the firm foundation that has already been laid down.
“We have major infrastructural, economic and social transformation projects and programmes which are being developed in consultation with the people of Guyana. We have initiatives such as the paving of the Linden-Lethem trail and the bridging of the Essequibo River which must be pursued as matters of urgent national priorities,” Minister Trotman said.
The oil revenues will allow the government to fulfill the dreams of the Guyanese people and to ensure that the quality of life for every citizen improves over the coming years.
Guyana has recently attracted prominent international media attention which fell short of fair and balanced reportage, but the government is confident that after decades of under-development and despite the challenges that lie ahead, the indomitable spirit of the Guyanese people will rise to the occasion and prevail, as Guyana is poised at the entrance of a new dimension of national and human development, the likes of which the country has never before experienced.
