Exxon Mobil ups estimate for Stabroek Block to four billion barrels
-area could be producing 750,000 barrels by 2025
As had been expected, ExxonMobil yesterday said it has increased its estimate of the discovered recoverable resources for the Stabroek Block offshore Guyana to more than 4 billion oil-equivalent barrels.
A statement from the company said it has advanced its analysis to support a third phase of development and consideration of two further phases.
“Outstanding resource quality across these opportunities combined with industry-leading project execution capabilities will provide great value to resource owners, partners and our shareholders”, the release said.
The hike in the estimated recoverable resource follows completion of testing at the Liza-5 appraisal well, a discovery at Ranger, and addition of the eighth discovery, Longtail, into the Turbot area evaluation and completion of the Pacora discovery assessment. The previous recoverable resource estimate was 3.2 billion oil-equivalent barrels.
“Outstanding resource quality across these opportunities combined with industry-leading project execution capabilities will provide great value to resource owners, partners and our shareholders,” said Neil Chapman, senior vice president, Exxon Mobil Corporation was quoted as saying.
“Continued success in Guyana and progress in other upstream growth projects in the U.S. Permian Basin, Mozambique, Papua New Guinea and Brazil are giving us additional confidence in achieving our long-term earnings growth plans that we outlined in March”, he added.
Guyana’s first development, Liza Phase 1, will use a floating production, storage and offloading (FPSO) vessel to produce 120,000 barrels of oil per day, starting by early 2020. Liza Phase 2, which is targeted for approval by the end of this year, will use an FPSO vessel designed to produce up to 220,000 barrels of oil per day and is expected to be producing by mid-2022.
The release said that the Liza-5 well successfully tested the northern portion of the Liza field and, along with the giant Payara field, will support a third phase of development in Guyana. The Payara operation will target sanctioning in 2019 and will use an FPSO vessel designed to produce approximately 180,000 barrels of oil per day, as early as 2023.
The Longtail well established the Turbot-Longtail area as a potential development hub for retrieval of more than 500 million oilequivalent barrels, the release said. Additional prospects to be drilled in this area could up this estimate.
The discoveries on the Stabroek Block to date have established the potential for up to five FPSOs producing over 750,000 barrels per day by 2025. ExxonMobil said that there is potential for additional production from significant undrilled targets and plans for rapid exploration and appraisal drilling, including at the Ranger discovery.
The Stabroek Block is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate, Esso Exploration and Production Guyana Limited, is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.
The Guyana Government yesterday expressed delight at the latest developments.
“Confidence and investor interest in Guyana will continue to grow as a result of this most recent and exciting announcement by ExxonMobil,” Minister of Natural Resources Raphael Trotman said, according to the Department of Public Information (DPI).
“The good news continues to flow for the people of Guyana and for future generations. Citizens can be assured that the management of the oil and gas industry is in prudent and capable hands, who will take the time and solicit the expertise needed in ensuring that all aspects of this industry is managed in the best interest of the people of Guyana,” Trotman added.
It was stated in the DPI release that the Department of Energy, which is being established, will continue the work for the efficient development of the resources.
“We have major infrastructural, economic and social transformation projects and programmes which are being developed in consultation with the people of Guyana. We have initiatives such as the paving of the LindenLethem trail and the bridging of the Essequibo river which must be pursued as matters of urgent national priorities,” Trotman said.
The Minister added: “What the oil revenues will allow us to do is to fulfil these dreams of the Guyanese people and to ensure that the quality of life for every citizen dramatically improves over a period of a few short years”.