South America: Oil Exploration Exxon Mobil Discovers Oil Offshore Guyana
This is the eighth oil block in the Longtail-1 well that has been explored by the company in the region. The block has been encountered at approximately 256 feet and comprises of high-quality, oil-bearing sandstone.
Texas/USA – Exxon Mobil Corporation has recently made its eighth oil discovery offshore Guyana at the Longtail-1 well, creating the potential for additional resource development in the southeast area of the Stabroek Block. The company encountered approximately 256 feet (78 m) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 18,057 feet (5,504 m) depth in 6,365 feet (1,940 m) of water. The Stena Carron drillship commenced drilling on May 25, 2018.
The firm is currently making plans to add a second exploration vessel offshore Guyana in addition to the Stena Carron drillship, bringing its total number of drillships on the Stabroek Block to three. The new vessel will operate in parallel to the Stena Carron to explore the block’s numerous high-value prospects.
The Noble Bob Douglas is completing initial stages of development drilling for Liza Phase 1, for which Exxon Mobil announced a funding decision in 2017. Phase 1 will consist of 17 wells connected to a floating production, storage and offloading (FPSO) vessel designed to produce up to 120,000 barrels of oil per day. First oil is expected in early 2020. Phase 2 concepts are similar to Phase 1 and involve a second FPSO with production capacity of 220,000 barrels per day. A third development, Payara, is planned to follow Liza Phase 2.
Guyanese businesses, contractors and employees continue to play an important role in the firm’s operations in the country. Exxon Mobil and project partners spent 24 million dollars with more than 300 local suppliers in 2017 and opened the Centre for Local Business Development in the capital city of Georgetown to promote the establishment and growth of small- and medium-sized local businesses.
The company’s priorities in Guyana are focused on enabling local workforce and supplier development and collaborating with government to support the growth and success of its economy, both in the energy and non-energy sectors.
The Stabroek Block is 6.6 million acres (26,800 square km). Esso Exploration and Production Guyana is operator and holds 45 per cent interest in the Stabroek Block. Hess Guyana Exploration holds 30 per cent interest and Cnooc Nexen Petroleum Guyana holds 25 per cent interest.