EXXONMOBIL Guyana on Friday announced that it has made an oil discovery at the Bluefin well in the Stabroek Block offshore Guyana.

This marks the company’s first discovery of 2024 and signals its continued progress in tapping into the Guyana’s vast oil and gas potential.

The Bluefin well, drilled by the Stena Drillmax drillship in 4,244 feet (1,294 metres) of water, encountered approximately 197 feet (60 metres) of hydrocarbon-bearing sandstone.

Situated about 8.5 kilometres southeast of the Sailfin-1 well, in the southeastern region of the Stabroek block, this discovery further bolsters ExxonMobil’s extensive exploration efforts in the area.

“Our exploration programme continues to improve our understanding of the block’s potential to drive viable oil and gas development.

“This latest find reinforces that we have the people, skills and technology to safely and responsibly deliver value to Guyana from the country’s resources,” President of ExxonMobil Guyana Alistair Routledge said in a release.

The Bluefin discovery adds to the impressive tally of more than 30 discoveries already made on the Stabroek block since 2015, underlining the area’s rich oil potential.

Notably, the Bluefin-1 exploration well is strategically located close to the Suriname border and lies six miles southwest of the Haimara-1 discovery, currently undergoing appraisal for potential gas development.

ExxonMobil’s exploration endeavours received regulatory approval from the Environmental Protection Agency (EPA) in July 2023, enabling the company to proceed with plans to drill up to 35 exploration and/or appraisal wells over the coming years.

This latest discovery reaffirms Guyana’s position as a key player in the global energy landscape and underscores ExxonMobil’s commitment to sustainable resource development in the region.
The oil giant continues to exceed expectations in oil production. With a current daily output of 645,000 barrels of oil, the company has surpassed its initial targets.

The operations are spread across three FPSO facilities – Liza Destiny, Liza Unity, and Prosperity – all of which are operating beyond their nameplate capacities. The ‘ONE GUYANA’ vessel will bolster these production numbers.

The year-end goal is to reach a total cumulative output of 500 million barrels, marking a major milestone for Guyana since the start-up in the Stabroek Block five years ago.

Also on the front burner, ExxonMobil is gearing up this year for an ambitious exploration and appraisal campaign in the offshore Stabroek Block, with plans to drill at least seven wells this year.
Out of the $29 billion invested, the company has recouped approximately $19 billion, leaving an outstanding cost of $10 billion.

As cost recovery completes, Guyana’s share of revenues will increase from 14.5 per cent to nearly 52 per cent, significantly boosting the country’s income from its oil resources.

Since beginning operations in 2018, ExxonMobil and HESS have made a substantial investment in the country, with Routledge detailing the figures involved.

Under the terms of the Production Sharing Agreements with ExxonMobil Hess, Guyana receives a two per cent royalty on pre-cost revenues and 50 per cent of profits, with a 75 per cent cap on revenues used for cost recovery.

This arrangement has allowed Guyana to earn over US$1 billion so far. While costs are still being recovered, Guyana’s government typically sees about 52 per cent of profits, equivalent to 14.5 per cent of total revenues.