NATURAL Resources Minister, Vickram Bharrat, on Tuesday, announced ExxonMobil’s 18th offshore oil discovery at the Redtail-1 exploration well, noting that the continued success experienced in the sector will support the long-term growth plans of the government.
Redtail-1 encountered approximately 232 feet of high-quality oil-bearing sandstone and was drilled in 6,164 feet of water. The well is located approximately 1.5 miles northwest of the Yellowtail discovery. It will add to the previously announced estimated recoverable resource of more than 8 billion oil-equivalent barrels on the Stabroek Block.
“The Government of Guyana welcomes the Redtail discovery and remains committed to the development of Guyana’s oil and gas resources. This discovery comes in wake of our county’s budget for the year 2020 and complements the number of progressive measures announced by His Excellency Dr. Irfaan Ali… and Honourable Vice President Dr. Bharrat Jagdeo,” Minister Bharrat stated.
Already, he highlighted that the Liza 1 well has yielded almost US$150 million from the three completed lifts with the fourth such schedule for later this year. Soon the Liza 2 well will commence production in early 2022 and the Liza Unity Floating Production and Offloading Vessel (FPSO) will be able to produce up to 220,000 barrels of oil per day.
Optimistically, Minister Bharrat said: “The ExxonMobil exploration programme continues to identify high-quality reservoirs in close proximity to previous discoveries. This will play an integral part in our long-term growth plans which will bring significant value to Guyana’s development… these significant discoveries in the new and emerging oil and gas sector will provide the impetus to the government’s effort to re-vitalise and re-capitalise the traditional productive sectors so that Guyanese can enjoy progress and contribute to wealth generation under the People’s Progressive Party administration.”
To ensure transparency in the sector and guaranteed benefit to Guyanese, the natural resources minister said that the Local Content Panel appointed by President Ali has commenced work, with consultations and workshops soon to be held with the relevant stakeholders.
It is intended that this will result in a draft a policy document and, eventually, a Local Content Legislative Framework.
Local content, in the context of Guyana’s industry, is the sum of input of local goods and services including employment across the oil and gas value chain. It is intended to ensure the education, inclusion and advancement of as many persons as possible in the value chain of the oil and gas industry.
Approximately 80 Guyanese employees, contractors and subcontractors took part in Redtail activities offshore, and more than 2,000 Guyanese and 600 local suppliers are supporting ExxonMobil’s activities in country. Guyanese staff have completed more than 350,000 hours of training in Guyana, Brazil, Canada, Singapore and the United States.
Reacting to the oil find, Mike Cousins, Senior Vice President of Exploration and New Ventures at ExxonMobil said: “Our Stabroek Block exploration program continues to identify high-quality reservoirs in close proximity to previous discoveries, establishing efficient opportunities for new projects in Guyana. Developing these projects remains an integral part of ExxonMobil and our co-venturers’ long-term growth plans and a source of significant value for Guyana.”
Minister Bharrat noted that, additionally, upon successful conclusion of the negotiations and approval of the Payara Development project, a third FPSO, the Prosperity, will be producing 220,000 barrels of oil per day.
ExxonMobil made the first commercial discovery in Guyana in 2015 and started production in December 2019.
