GUYANA: ExxonMobil makes two more oil discoveries offshore

Exxon-Stena Drillmax

IRVING, Texas – ExxonMobil today said it made two oil discoveries at Fangtooth-1 and Lau Lau-1 in the Stabroek block offshore Guyana.

The Fangtooth-1 well encountered approximately 164 feet (50 meters) of high-quality oil-bearing sandstone reservoirs. The well was drilled in 6,030 feet (1,838 meters) of water and is located approximately 11 miles (18 kilometers) northwest of the Liza field. The Lau Lau-1 well encountered approximately 315 feet (96 meters) of high-quality hydrocarbon-bearing sandstone reservoirs. The well was drilled in 4,793 feet (1,461 meters) of water and is located approximately 42 miles (68 kilometers) 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 $540 million with more than 800 local companies since 2015.

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% interest. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Limited holds 25% interest.

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Comments

  • brandli62  On 01/06/2022 at 5:01 am

    There will be many more discoveries in the Stabroek block in the coming years. We have just seen the tip of the iceberg. Keep in mind that only about 10% of the Stabroek block has been validated with oil drilling campaigns.

  • guyaneseonline  On 01/06/2022 at 6:41 am

    Exxon’s latest discoveries add to 26 commercial finds in Guyana – oil minister
    OilNOW- January 6, 2022

    The two oil discoveries announced by ExxonMobil on Wednesday add to 26 commercial finds in Guyana which the Ministry of Natural Resources said will further strengthen the South American country’s position as a major new oil and gas hotspot.

    Exxon struck black gold at the Fangtooth-1 and Lau-Lau-1 wells in the prolific Stabroek Block, starting the new year with a bang ahead of first oil at its second development – Liza Phase 2 – this quarter.

    “The Government of Guyana remains confident that these two additional discoveries, which add to the twenty-six commercially feasible finds, will further strengthen Guyana’s position as a country with world-class discoveries of high-quality hydrocarbon,” natural resources minister Vickram Bharrat said in a statement.

    The Fangtooth-1 well encountered approximately 194 feet (59 meters) of high-quality oil-bearing reservoirs. The well was drilled in 6030 feet (1838 meters) of water and is located approximately 11 miles (18 kilometers) west of the Liza and Payara fields. Lau-Lau-1 encountered approximately 302 feet (92 meters) of high-quality hydrocarbon-bearing reservoirs. The well was drilled in 4793 feet (1461 meters) of water and is located approximately 41 miles (68 kilometers) southeast of the Liza field.

    Guyanese authorities said they will be forging ahead with development of the more than 10 billion barrels of oil equivalent found offshore since 2015, while maintaining a social, economic, and environmental balance.

    “In addition, the Government of Guyana is continually examining possibilities to strengthen oversight and management of the exploration programmes of all operators to further expand the sector through commercial discoveries,” Mr. Bharrat said.

    In addition to Liza Phase 1 and 2, the Prosperity FPSO for the Payara field is undergoing construction in Singapore for a planned production start-up date in 2024. The government is also reviewing the field development plan for the Yellowtail project with approval expected soon.

    Mr. Bharrat said development of the offshore resources will be undertaken in keeping with international best practices for compliance and transparency within the petroleum sector and to ensure benefits are derived for all Guyanese.

  • Bridgit  On 01/09/2022 at 10:57 am

    When they’ve finished sucking up the oil from our pond, we’ll be left stuck in the mud with no planks to stand on.

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