MORE OIL
Minister of Natural Resources, Vickram Bharrat
Minister of Natural Resources, Vickram Bharrat

–with ExxonMobil’s latest double strike at the Stabroek Block
–company commits to continue its acceleration of exploration, development and production activities

EXXONMOBIL has announced that it has made two new discoveries to the southeast of the Liza and Payara developments in the Stabroek block, offshore Guyana.

The discoveries at Seabob-1 and Kiru-Kiru are ExxonMobil’s sixth and seventh in Guyana this year, with the total number of discoveries now moving to 33 in the Stabroek Block.

The Seabob-1 well encountered approximately 131 feet (40 meters) of high-quality hydrocarbon-bearing sandstone and was drilled in 4,660 feet (1,421 meters) of water by the Stena Carron drill ship.

Further, according to ExxonMobil, the Kiru-Kiru-1 well encountered approximately 98 feet (30 meters) of high-quality hydrocarbon-bearing sandstone and was drilled by the Stena DrillMAX in 5,760 feet (1,756 meters) of water. Drilling operations at Kiru-Kiru are ongoing.

The Stena DrillMAX

“ExxonMobil and its partners continue to accelerate exploration, development and production activities for the benefit of all stakeholders, including the people of Guyana,” President of ExxonMobil’s Upstream Company, Liam Mallon said.

He added: “The resources we are investing in and discovering offshore Guyana will provide safe, secure energy for global markets for decades to come.”

The company’s 2022 investment plans include further exploration drilling and resource development in Guyana, where it is already increasing production at an accelerated, industry-leading pace.

As it is now, the company 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 Liza Destiny FPSO

The third project, Payara, is expected to produce 220,000 barrels per day; construction of 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.

ExxonMobil is also moving ahead with plans for its fifth development project in the Stabroek Block, Uaru, which is expected to produce up to 250,000 barrels of oil per day.

In a statement on Tuesday, following the announcement of the new discoveries by ExxonMobil, Minister of Natural Resources Minister, Vickram Bharrat, said that the new finds will further position Guyana as an oil-producing and exporting nation with the much internationally sought after ‘medium sweet crude.’

DIVERSIFICATION
He added that those discoveries and subsequent returns would enhance the government’s efforts to diversify away from oil and focus on provision of world-class healthcare, infrastructure and other social services to enhance the lives of all Guyanese.

“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.

In order to solidify the foundation of Guyana’s economy and enhance the overall well-being and welfare of every Guyanese, the government is crafting a framework for development that will be sustained through prudent and effective investment of oil funds into education, health, infrastructure and the non-oil sectors.

Vice-President, Dr. Bharrat Jagdeo, had said that the intention of the incumbent is to craft a framework for the future which will see more proceeds from the petroleum industry going toward Guyanese.

“… we have to spend the money to build the future, that is why we have made it clear in our manifesto, when we campaigned between 2015 and 2020, that money will be spent on education, healthcare, infrastructure and assistance to non-oil industries,” the Vice-President told residents of Region Six during a recent Cabinet outreach.

Although much is expected to be achieved with returns from the oil and gas sector, Minister Bharrat, in his statement on Tuesday, said the government will continue to work with local stakeholders and international partners to ensure all petroleum activities are conducted in keeping with the best environmental and sustainable practices.

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