Triple strike!
A map showing ExxonMobil’s five discoveries for 2022 and its sanctioned projects in the Stabroek Block (ExxonMobil photo)
A map showing ExxonMobil’s five discoveries for 2022 and its sanctioned projects in the Stabroek Block (ExxonMobil photo)

–ExxonMobil’s Barreleye-1, Patwa-1, Lukanani-1 wells produce promising results
–increase estimated recoverable oil resources at nearly 11 billion barrels

ESTIMATED recoverable oil resources in the Stabroek Block, offshore Guyana, have increased to 11 billion barrels, following three new discoveries by the operator of the block, ExxonMobil.
According to a press statement from ExxonMobil, the three discoveries, which are southeast of the Liza and Payara developments, have taken the total number of discoveries made by the company this year to five.

The Barreleye-1 well encountered approximately 230 feet (70 meters) of hydrocarbon-bearing sandstone, and was drilled in 3,840 feet (1,170 meters) of water.
Drilling at Patwa-1 encountered 108 feet (33 meters) of hydrocarbon-bearing sandstone, and was conducted in 6,315 feet (1,925 meters) of water, while the Lukanani-1 well encountered 115 feet (35 meters) of hydrocarbon-bearing sandstone, and was drilled in a water depth of 4,068 feet (1,240 meters). Operations are ongoing at Barreleye-1 and Lukanani-1.

“These discoveries and the updated resource estimate increase the confidence we have in our ambitious exploration strategy for the Stabroek Block, and will help to inform our future development plans for the southeast part of the block.

“ExxonMobil remains committed to delivering value at an accelerated pace to the people of Guyana, our partners and shareholders, and reliably supplying affordable energy to meet increasing demand around the world,” President of ExxonMobil Upstream Company, Liam Mallon said.

ExxonMobil has four sanctioned projects offshore Guyana. Of those, Liza Phase One is producing approximately 130,000 barrels per day, using the Liza Destiny floating production storage and offloading (FPSO) vessel, while the Liza Phase Two, which started production in February, is steadily ramping up to its capacity of 220,000 barrels per day, using the Liza Unity FPSO vessel.

The third project, Payara, is expected to produce 220,000 barrels per day; construction on its production vessel, the Prosperity FPSO, is running approximately five months ahead of schedule, with start-up likely before year-end 2023.

The fourth project, Yellowtail, is expected to produce 250,000 barrels per day when the One Guyana FPSO comes on stream in 2025.

HUGH BENEFITS
“These projects will bring huge benefits to Guyana,” President of ExxonMobil Guyana, Alistair Routledge said during a brief interview released by ExxonMobil.

It was reported that returns from the sector are expected to catapult Guyana to the ranks of wealthiest countries in the Western Hemisphere, thereby increasing the government’s fiscal space to invest in initiatives geared at expanding the economy, and improving the overall welfare of citizens.

“Guyana is now poised to be one of the wealthiest countries in the hemisphere; we intend to employ the gains from exploiting these deposits into initiatives geared at expanding the economy, improving competitiveness, giving people the best social services, increasing productivity, enhancing food production, and building new sectors,” President, Dr. Irfaan Ali had said in his keynote address during a virtual faculty workshop on the microeconomics of competitiveness hosted by the Harvard Business School.

In painting a vivid image of what is expected of the oil-and-gas sector in the near term, Dr. Ali said that by 2025, operating cash flow, based on total investment, is expected to reach US$3.5 billion.
As it is now, Guyana has US$719,713,039 in its Natural Resources Fund (NRF) at the US Federal Reserve Bank.

Based on the government’s plans for development, the bulk of those funds will go towards education, health, infrastructure and the non-oil sectors.
Those investments and subsequent programmes would be supplemented by the Local Content Act that came into effect in December 2021.

The new law earmarks 40 sectors or services, and stipulates a minimum percentage of the total value of expenditure on those services that oil companies and their sub-contractors must procure from Guyanese suppliers.

Already, Guyanese businesses have benefitted immensely from the operations of ExxonMobil, with companies absorbing more than US$600 million (roughly G$125 billion) in expenditures from the oil giant between 2015 and now.

ExxonMobil, in a recent press statement, related that along with its direct contractors, it has expended over US$600 million with more than 880 local suppliers.

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