GUYANA: ExxonMobil makes 18th oil discovery: Redtail Well Discovery Offshore

ExxonMobil issued the following statement today:

ExxonMobil Announces Redtail Discovery Offshore Guyana

·         Oil discovery is 18th offshore Guyana; follows discovery at Yellowtail-2

·         Adds to previous estimate of more than 8 billion barrels of discovered recoverable resource

IRVING, Texas – ExxonMobil has made its 18th discovery offshore Guyana at the Redtail-1 well which will add to the previously announced estimated recoverable resource of more than 8 billion oil-equivalent barrels on the Stabroek Block.   

“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,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil. “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.”

Redtail-1 encountered approximately 232 feet (70 meters) of high-quality oil bearing sandstone and was drilled in 6,164 feet (1,878 meters) of water. The well is located approximately 1.5 miles (2.5 kilometers) northwest of the Yellowtail discovery.

In addition to the Redtail-1 discovery, drilling at Yellowtail-2 encountered 69 feet (21 meters) of net pay in newly identified, high quality oil bearing reservoirs among the original Yellowtail-1 discovery intervals. This resource is currently being evaluated for development in conjunction with nearby discoveries.

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.

ExxonMobil made the first commercial discovery in Guyana in 2015 and started production in December 2019 from the Liza Destiny floating production and offloading vessel (FPSO), which can produce up to 120,000 barrels per day.

ExxonMobil continues to advance the Liza Phase 2 project, which is expected to startup in 2022 and produce up to 220,000 barrels per day. Construction activities are underway in Singapore on the Liza Unity FPSO. A third production vessel for the Payara development, with production capacity of 220,000 barrels a day, is on hold pending government approval.

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 Petoleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 percent interest.

The Guyana Government has said that:

The Redtail Discovery is an addition to the Liza 1 well, which is in production and has already yielded almost $150 million USD from the three (3) completed lifts with the 4th lift schedule for later this year. The Liza 2 well is expected to start production in early 2022 from the LIZA Unity Floating Production and Offloading Vessel (FPSO) with a capacity to produce up to 220,000 barrels of oil per day.

Additionally, upon successful conclusion of the negotiations and approval, PAYARA will follow Liza 1 & 2 with Prosperity FPSO, also producing 220,000 barrels of Oil.

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  • kamtanblog  On 09/09/2020 at 3:40 am

    Why was “OPEC” formed/established ?
    Why was production used to “stabilise/control/increase/decrease” production/price !

    In a free market economy regulation is
    usually sacrificed for

    Governments regulate !
    Markets fluctuate !

    Private/public parthnerships way forward.
    It’s not communism, socialism or capitalism
    either. “More” pragmatism “less” extremism …
    More or less variables !

    Now go google
    Go figure

    Kamtan uk-ex-EU

  • brandli62  On 09/10/2020 at 4:19 am

    This is good news as it reinforced that notion that Guyana (and Suriname) are sitting on huge oil reserves. Now it takes a cool head and patients to negotiate future production agreements wisely and with strict Norwegian environmental standards. The new government still has to prove that they are able to do so.

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