Guyana expects economic boost as Exxon confirms than 4 billion oil-equivalent barrels at Stabroek Block

The ExxonMobil-controlled Stabroek Block offshore Guyana has now been confirmed to have the equivalent of more than 4 billion barrels of oil.

ExxonMobil announced early last week, that it has increased its estimate of the discovered recoverable resources from a previous estimate of 3.2 billion oil-equivalent barrels and has advanced its evaluation to support a third phase of development and consideration of two additional phases.

In a statement the oil giant said that the increase follows the completion of testing at the Liza-5 appraisal well, a discovery at Ranger, the 8th discovery, Longtail, into the Turbot area evaluation and completion of the Pacora discovery evaluation.

“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 sanctioning 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 produced by mid-2022,” Exxon said.

According to Exxon Mobil’s senior vice-president Neil Chapman, the Liza-5 well successfully tested the northern portion of the Liza field and, along with the giant Payara field, will support the 3rd phase of development in Guyana.

“The Payara development will target sanctioning in 2019 and will use a floating production storage and offloading (FPSO) vessel designed to produce approximately 180,000 barrels of oil per day, as early as 2023,” Chapman said.

The Longtail well established the Turbot-Longtail area as a potential development hub for recovery of more than 500 million oil-equivalent barrels. Additional prospects to be drilled in this area could increase this estimate.

“The collective discoveries on the Stabroek Block to date have established the potential for up to 5 FPSOs producing over 750,000 barrels per day by 2025. There is potential for additional production from significant undrilled targets and plans for rapid exploration and appraisal drilling, including at the Ranger discovery,” said Exxon.

The Stabroek Block is 26,800 square kilometers (6.6 million acres). ExxonMobil affiliate, Esso Exploration and Production Guyana Ltd (EEPGL), is the 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 the other 25 percent interest. -(CMC)