Double strike for ExxonMobil at Whiptail exploration projects
A pictorial representation of ExxonMobil’s operations offshore Guyana, in the various blocks (ExxonMobil’s photo)
A pictorial representation of ExxonMobil’s operations offshore Guyana, in the various blocks (ExxonMobil’s photo)

–authorities stand ready to work with operators to expedite drill programmes, says Minister Bharrat
–Yellowtail identified as fourth development project, with startup set for 2025

THE Stabroek Block offshore Guyana continues to be a reservoir of prosperity for Guyana, with ExxonMobil, the global oil giants, striking twice at the Whiptail exploration projects.
According to ExxonMobil, the Whiptail-1 well encountered 246 feet (75 meters) of net pay in high-quality oil-bearing sandstone reservoirs. And over at the Whiptail-2 well, where drilling is ongoing, the operator encountered 167 feet (51 meters) of net pay in high-quality oil-bearing sandstone reservoirs.
‘Pay’, according to Schlumberger, is a reservoir or portion of a reservoir that contains economically producible hydrocarbons.
The overall interval in which pay sections occur is the gross pay, while the smaller portions of the gross pay that meet local criteria for pay such as minimum porosity, permeability and hydrocarbon saturation, are net pay.

With the prospects at both wells being positive, ExxonMobil said that drilling will continue in order to test deeper targets, and the results will be evaluated for future development.
The Whiptail discovery is located approximately four miles Southeast of the Uaru-1 discovery that was announced in January 2020 and approximately three miles West of the Yellowtail field.
Whiptail-1 is being drilled in 5,889 feet (1,795 meters) of water by the Stena DrillMAX, while Whiptail-2, which is located three miles northeast of Whiptail-1, is currently being drilled in 6,217 feet (1,895 meters) of water by the Noble Don Taylor.  “This discovery increases our confidence in the resource size and quality in the Southeast area of the Stabroek Block and could form the basis for a future development as we continue to evaluate the best sequence of development opportunities within the block,” ExxonMobil’s Senior Vice-President of exploration and new ventures, Mike Cousins, said.

In statement on Wednesday, Minister of Natural Resources, Vickram Bharrat, said the respective discoveries, which take the total to 22, will add to the previously announced gross discovered recoverable resource estimate for the block, which is currently over nine billion oil-equivalent barrels.
“As with discoveries prior, the Government of Guyana foresees this new development increasing the potential for additional floating production storage and offloading vessels (FPSO). This is further set to increase the estimated recoverable resource given by the operator, Esso Exploration and Production Guyana Limited (EEPGL),” Minister Bharrat said.
In this regard, the ministry and petroleum sector regulatory agencies remain committed to working with all operators, in efforts to expedite their respective drill programmes and expand the petroleum sector.

“The Government of Guyana welcomes these new discoveries offshore Guyana and reinforces its commitment to the sustainable exploration and development of Guyana’s Oil and Gas Resources. This we commit to do with the highest level of compliance and transparency to ensure that the benefits from this sector improve the lives of all Guyanese,” Minister Bharrat said.
ExxonMobil alone envisions at least six projects online by 2027 and sees potential for up to 10 projects to develop its current recoverable resource base.
The Liza Destiny FPSO vessel is currently producing about 120,000 barrels of oil per day, while the startup of Liza Phase 2 remains on target for early 2022. The Liza Unity FPSO, which will service the Liza Phase 2 project, is expected to sail from Singapore to Guyana in late August 2021. The Liza Unity has a production capacity of approximately 220,000 barrels of oil per day.

Further, late last year, the oil giant, following an agreement with the Government of Guyana, decided to proceed with the Payara field development offshore Guyana.
Payara is ExxonMobil’s third project in the Stabroek Block, and is expected to produce up to 220,000 barrels of oil per day, after start-up in 2024, using the FPSO vessel. The US$9 billion development will target an estimated resource base of about 600 million oil-equivalent barrels.
For this project, the hull for the Prosperity FPSO vessel is complete, and topsides construction activities are ongoing in Singapore, with a startup target of 2024.
Yellowtail has since been identified as the fourth development project in the Stabroek Block, with anticipated startup in 2025.

Following necessary government approvals and a final investment decision, this project will develop the Yellowtail and Redtail fields, which are located about 19 miles (30 kilometers) Southeast of the Liza developments, and potentially adjacent resources.
These new projects continue to contribute to the advancement of the Guyanese economy. More than 2,600 Guyanese are now supporting project activities on and offshore, which reflects an increase of more than 20 per cent since the end of 2019.
ExxonMobil and its key contractors have spent approximately US$388 million with more than 800 local companies since 2015.

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