Oil boom for Guyana continues more new discoveries announced

ExxonMobil has announced two oil discoveries at Fangtooth-1 and Lau Lau-1 in the Stabroek block offshore Guyana.

The Fangtooth-1 well encountered approximately 50 meters (164 feet) of high-quality oil-bearing sandstone reservoirs. The well was drilled in 1,838 meters (6,030 feet) of water and is located approximately 18 kilometers (11 miles) northwest of the Liza field. The Lau Lau-1 well encountered approximately 96 meters (315 feet) of high-quality hydrocarbon-bearing sandstone reservoirs.

The well was drilled in 1,461 meters (4,793 feet) of water and is located approximately 68 kilometers (42 miles) southeast of the Liza field.

These discoveries will add to the previously announced recoverable resource estimate for the block, of 10 billion oil-equivalent barrels.

“Initial results from the Fangtooth and Lau Lau wells are a positive sign for Guyana and continue to demonstrate the potential for the country’s growing oil and gas sector, ExxonMobil and our co-venturers in the Stabroek block,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil.

“The Fangtooth discovery is a successful result of our strategy to test deeper prospectivity, and the Lau Lau discovery adds to the large inventory of development opportunities in the southeast part of the Stabroek block. Both discoveries increase our understanding of the resource, our continued confidence in the block’s exploration potential, and our view that the many discoveries to date could result in up to 10 development projects.”

Fangtooth was drilled by the Stena DrillMAX, and Lau Lau was drilled by the Noble Don Taylor, which are two of six drillships supporting exploration and development drilling across three blocks operated by ExxonMobil offshore Guyana.

Separately, progress continues on infrastructure for future field development. The Liza Unity floating production storage and offloading (FPSO) vessel is undergoing hookup and commissioning after arriving in Guyanese waters in October 2021. The Unity is on track to start production in the first quarter of 2022 and has a target of 220,000 barrels of oil per day at peak production.

The hull for the Prosperity FPSO vessel, the third project on the Stabroek block at the Payara field is complete and topside construction activities are ongoing in Singapore for planned production start-up in 2024. The Field Development Plan and Environmental Impact Assessment for the fourth potential project, Yellowtail, have been submitted for government and regulatory review.

These new projects continue to drive investment in Guyana’s growing economy. More than 3,200 Guyanese are now employed in supporting project activities, and ExxonMobil and its key contractors have spent more than US$540 million with more than 800 local companies since 2015.

The Stabroek block is 26,800 square kilometers (6.6 million acres). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.