ExxonMobil ups Guyana recoverable resources to more than 8 billion barrels, makes discovery at Uaru

Oil discoveries, including dry holes and the latest, Uaru.

IRVING, Texas – ExxonMobil has increased its estimated recoverable resource base in Guyana to more than 8 billion oil-equivalent barrels and made a further oil discovery northeast of the producing Liza field at the Uaru exploration well, the 16th discovery on the Stabroek Block.

The new recoverable resource estimate includes 15 discoveries offshore Guyana through year-end 2019. The Uaru discovery is the first of 2020 and will be added to the resource estimate at a later date.         

“With recent high-quality finds at Tripletail and Mako contributing to our recoverable resources, our investments will continue to provide benefits for the people of Guyana,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil. “The Uaru discovery is another positive step as we begin a new decade with the Co-operative Republic of Guyana and our co-venturers.”

Uaru encountered approximately 94 feet (29 meters) of high-quality oil-bearing sandstone reservoir. The well, drilled in 6,342 feet (1,933 meters) of water, is located approximately 10 miles (16 kilometers) northeast of the Liza field, which began producing oil in December 2019.

Production from the Liza Phase 1 development is currently ramping up and will produce up to 120,000 barrels of oil per day in the coming months, utilizing the Liza Destiny floating production storage and offloading vessel (FPSO).

The Liza Unity FPSO, which will be employed for the second phase of Liza development and will have a production capacity of 220,000 barrels of oil per day, is under construction and expected to start production by mid-2022.

Pending government approvals and project sanctioning of a third development, production from the Payara field north of the Liza discoveries could start as early as 2023, reaching an estimated 220,000 barrels of oil per day.

Four drillships in Guyana continue to explore and appraise new resources as well as develop the resources within approved projects. A fifth drillship is expected to be deployed later this year.

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 Limited, holds 30 percent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 percent interest.

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Comments

  • brandli62  On January 27, 2020 at 4:31 pm

    I would not be surprised, if the number of confirmed oil reserves will grow well above the 8 billion barrels reported by Exxon today. Exxon’s numbers do not include the findings by Tullow and there are many offshore blocks, where drilling has not happened yet.

    To put things into relationship, Guyana’s confirmed current oil reserves of 8 billion barrels amount to 10’700 barrels per capita, which is comparable to the number for the UAE. This puts Guyana (and the UAE) 2nd to Kuwait with 25’000 barrels per capita, which tops the list.

    The next government will have a huge responsibility to manage the expected wealth of the coming years wisely, free of corruption, and with a long-term view to benefit ALL people of Guyana.

    • Trevor  On January 27, 2020 at 9:21 pm

      Exxon’s discoveries in the Stabroek Block have only covered 10% of the total block and they are reaching 10 billion barrels of oil reserves.

      Some might say that the oil wells north of Ranger might be over 50 billion barrels or even in the multi-hundreds of billions of barrels of oil.

      It’s interesting times for the Caribbean region.

      While the ABC countries are declining and becoming racist and hostile, Guyana is blessed with a potential of hundreds of billions of barrels of oil reserves.

      To put this into context, Venezuela has mostly 350 billion barrels of thick and tar-grade crude oil, and Canada has the same, which is 170 billion barrels of tar-grade bitumen grade crude oil.

      Saudi Arabia has 280 billion barrels of sweet crude.

      Therefore, Guyana might have more oil than Saudi Arabia and Venezuela combined. Less than 5% of the total offshore has been discovered and every well is at least 500 million barrels, with 40 more wells to be drilled for this year.

  • Trevor  On January 27, 2020 at 9:08 pm

    There are probably 50 billion barrels of oil more waiting to be discovered. How it will be used, or if it will benefit anyone is anyone’s guess.

    I’m certain that if Bharrat Jagdeo gets hold of the oil blocks he will use it for himself using Irfaan Ali as a stooge.

    Some Venezuelans told me that Guyana might have over 100 billion barrels of Orinoco tar-grade crude in the interior, and that my 50 billion guess is an understatement.

    Exxon has only penetrated 10% of the total offshore oil blocks and has amassed almost 9 billion barrels of oil. Multiply that by 10 times and you’re looking at oil in the hundreds of billions of barrels.

  • Trevor  On January 27, 2020 at 9:16 pm

    Tullow has also discovered heavy sulfur crude of at least 200 mm bbl of oil per well, and the block has at least 100 wells, so multiply 200 million by 100 wells and you get 20,000 million potential barrels of heavy crude oil or at least 20 billion barrels of “heavy sulfur” crude. If this grade of oil is profitable Tullow will produce the oil.

    CGX anticipates that the Corentyne block has a potential of 5 billion barrels of oil, and I’ve read somewhere that the oil blocks up north have a huge potential of at least 20 billion barrels of oil and gas equivalent.

    Stabroek Block= 25-50 billion barrels (9 billion already discovered for 10% of the block)
    Orinduik Block= 20 billion barrels
    Canje Block= 5 billion barrels
    Corentyne Block= 5 billion barrels

    “Orinoco grade” oil in Region One= potential of 100 billion barrels (as claimed by the Venezuelans.

    Our country is rich in oil. Guyana might be the one with the largest oil reserves in the world if these discoveries are made in the future.

    I wonder what Guyanese in the Diaspora think of these massive discoveries and the potential that Guyana has oil reserves in the hundreds of billions? I’ve read and talked to my friends who told me that America, Canada and England are s-holes.

  • dhanpaul narine  On January 28, 2020 at 12:36 am

    Trevor, thanks. You have given us much useful information. There is something called Verification. This means that Guyana should be able to verify the numbers and as of now are in no position to do so. We must take as gospel what Exxon tells us. We have no Guyanese in the upper administration of Exxon to oversee the numbers and this is worrying. They could export 1.5 million barrels and tell us that its 1 million. Unless we can verify the statistics, and re-negotiate that contract we will not get our fair share. Thus is a view from the diaspora.

    • Trevor  On January 29, 2020 at 7:35 pm

      Exxon is planning to increase the company’s floating vessels to export up to a million barrels of oil starting 2025. I’ve read this in Forbes.

      How will the Saudis react to this, I dunno…

  • Trevor  On January 28, 2020 at 11:16 am

    You’re living in America, so do you know 1) what is the risk that Exxon might claim losses? 2) How can Exxon’s share price hit “decade lows” when the oil company has discovered almost 10 billion barrels of oil so far, with 95% of the blocks that is yet to be drilled and tested?

    https://oilprice.com/Latest-Energy-News/World-News/ExxonMobil-Stock-Hits-Decade-Low.html

  • brandli62  On January 28, 2020 at 12:01 pm

    To date, there is no evidence that Exxon has been betraying the Guyanese government. However, there is a long history of the Russian company RUSAL in being in transparent about their revenue gained from mining Bauxite in Guyana:

    https://guyaneseonline.net/2020/01/28/guyana-the-berbice-river-shall-remain-blocked-until-russian-eye-pass-ceases-lincoln-lewis/

    This should be of great concern to the Guyanese. Nobody in Russia will care, if RUSAL is corrupt. There is no rule-of-law in Russia. By contrast, If Exxon engages in corrupt practices, it can be taken to court in the US. Finally, the deal made with Exxon will come up sooner or later for renewal. By then the Guyanese government will have more expertise and leverage to negotiate a better deal.

  • Sheldon  On January 28, 2020 at 9:02 pm

    Good news for Exxon-Mobil and for the Guyanese people. At this rate, your nation will have more oil than Kuwait on a per capita basis.

    As someone who once worked with a competitor in the oil industry, it was rumored that the Guyana-Suriname basin has a vast amount of oil that it would be enormous to measure using billions, tens of billions or even hundreds of billions of barrels of oil equivalent.

    I can’t predict how many more billions of barrels of oil equivalents are in the Starbrook block, but my colleagues back in the 1970s used to joke that the offshore basin was most likely the El Dorado.

    I wouldn’t be surprised if Exxon-Mobil discovers at least a few billion more barrels of oil equivalent in the coming months.

    I also wish to encourage Guyanese to stand up against the dictatorship next door and allow Exxon-Mobil to drill in the disputed waters. I see that there was a large discovery named “Ranger”. There could be hundreds of wells of that size nearby which could up the resource size to record highs.

    I congratulate Exxon-Mobil for investing in the offshore potential of Guyana which is set to be one of the largest oil fields in the world.

    Let me give anyone a tip. If you want to win a bet, contend that in the year 2030, Guyana’s offshore oil potential will be over 120 billion barrels of oil equivalent. This is one bet that you will win. See me in ten years for proof!

    • Emanuel  On January 29, 2020 at 12:45 am

      What the drillers have found so far is just a drop in de big bucket. But de question is, how will it benefit the lives of awhee?

  • brandli62  On January 29, 2020 at 2:21 am

    I completely agree with Sheldon’s view that Guyana should not hesitate to extend oil drilling activities into areas that are off the coast west of the Essequibo. The Venezuelan claims will not hold up in the International Court of Justice. Given the current state of affairs, Venezuela is too weak and economically depressed to mount an attack on Guyana. However, you never know what a dictator in trouble will do to achieve national unity. The occupation of the Falkland Islands by Argentina in the 80ties should serve as a grim reminder. Hence, any move to drill in “disputed” areas needs to be planned carefully.

    In my opinion, the fact that Exxon is an US company provides critical security for Guyana. The US government will not allow any military action of Venezuela against Guyana that could threaten the business interests of a major US company. The following steps should be taken by the next government to be elected in March:

    1. Ensure that the oil production in oil fields east of the Essequibo are up and running to generate a stable revenue stream for Guyana, Exxon’s and its partners.

    2. Improve the onshore infrastructure to export oil taking into account that the oil reserves are growing day by day.

    3. Find ways to use the natural gas in Guyana for power production to cover needs at night that cannot be cover by solar power.

    4. Encourage Exxon and its partners to make long-term investments into the country. Given the size of the oil reserves, it is imperative that Guyana needs to insist that the oil is refined onshore once the oil deals come up for renegotiation.

    5. Carefully monitor the development of Venezuelan refugee numbers in regions west of the Essequibo. If they get too high, refugees should be relocated to the areas east of the Essequibo. You want to avoid any precontext for an invasion, such as our nationals in Guyana were” threatened” or the area is predominantly inhabited by Venezuelans.

    6. Modernize the Guyanese defence forces and establish an effective coast guard to protect Guyanese maritime zones of interests. This will require investments in equipment (boats, helicopters, defensive weapons). A small fleet of jet fighters to secure the Guyanese airspace might also be necessary.

    7. Improve the infrastructure, such as roads, along the coast west of the Essequibo. Harbours and airports should also be upgraded.

    8. Reach agreements with the US (and possibly Brazil) for military assistance in case Venezuela were to mount an attack on Guyanese territories. This might also allow to reduce military spending internally.

    Implementing this program will keep Guyana busy for the next ten years. Once these points are achieved, gradual exploration of the offshore areas west of the Essequibo can be gradually started.

  • Jim  On January 29, 2020 at 4:35 pm

    The Anadarko block is currently estimated to contain over 50 billion barrels of oil equivalent, with potential discoveries of up to 85 billion barrels of oil equivalent based on current technologies and profitability.

    The Anadarko block is almost similar to the Stabroek Block and the Apache 58 block. XOM predicts that the Stabroek Block might contain more than 125 billion barrels of oil equivalent based on recent seismic tests. Future oil wells in the disputed areas north-west of Ranger could hold potential for multi-hundred-billion barrels of potential oil reserves.

    Unfortunately, the illegal government in Venezuela is preventing Occidental from exploring this lucrative basin and exporting this sweet crude oil for the benefit of Guyanese. The previous stakeholders of the Anadarko block (now being transferred to OXY) were planning to produce 0.5 million barrels of sweet crude daily from the Anadarko block starting from 2022, and reach peak production of 1.5 million barrels of oil. Due to the reality that we have to first make the discoveries official to the public, we cannot prepare papers to the government to get approval for oil production, yet.

    There has been a finding of a potential of several wells containing at least 200 million to 4 billion barrels of oil equivalent, with dozens of more wells of this nature to be drilled and discovered. This block might contain as much oil, albeit lighter and sweeter, than what is currently located in the Orinoco Basin.

    I urge the illegal Maduro government to cease any form of maritime aggression on exploration vessels. The oil belongs to Guyana.

    • Trevor  On February 2, 2020 at 12:25 pm

      Not much is being said of the Anadarko block so thanks for telling us.

  • Trevor  On January 29, 2020 at 7:33 pm

    How many Guyanese living overseas are planning to remigrate? The Chinese investors are paying double for houses along Berbice.

    Right now the PPP supporters are becoming hostile towards anyone deemed a Venezuelan or expat. They only want the oil for themselves. Freddie Kissoon has not learned this from speaking with the lady at the wake house who lamented that she was being treated unfairly by the public sector because she is part of the PPP.

  • Trevor  On February 2, 2020 at 12:17 pm

    ONE HUNDRED + 20 Billion barrels of oil?

    What are the Diaspora doing struggling working deadend jobs in Toronto or NYC? My Euro-Indian Guyanese friend has already lamented that Canada has told him a lie that it’s a country that is socially equitable. He claims that he is one paycheque away from becoming homeless, but he can’t stop working his “dead-end job”. He has also warned me not to migrate because even he believes that Guyana has a lot of oil and opportunity today and it isn’t like the past when the ABC countries were economic powerhouses.

    He even told me that Canada lies to foreign students and lures them to spend tens of thousands of dollars from India or China to end up living as second class citizens paying C$1000 a mongth to rent a room inside a basement.

    America also has that mass shooting problem and racism against non-whites.

    Guyana is blessed. Freddie Kissoon can’t admit that. Does Guyana have racist mass shooters, or is he treated as a refugee and accosted by racist people in GT?

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