22 C
Georgetown
Thursday, May 13, 2021

ExxonMobil ups Guyana resource to more than 8 billion barrels; announces 16th oil discovery

Must Read

Chevron shuts in Tamar gas platform offshore Israel as violence escalates

(S&P Global Platts) US major Chevron has shut in the Tamar gas platform offshore Israel amid an escalation of...

Giant Yellowtail FPSO will produce up to 7.5 million barrels of oil per month during early stage of operations

The offshore developments in Guyana are growing both in number and capacity, with the fourth proposed project at Yellowtail...

Fabrication of topsides for Guyana’s 3rd oil production vessel underway in Singapore

Work on Guyana’s 3rd oil production vessel is progressing on schedule in Singapore, SBM Offshore said in its Q1...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

Director of Guyana’s Department of Energy, Dr. Mark Bynoe, today announced that ExxonMobil has made its 16th oil discovery offshore Guyana. The new discovery was made northeast of the producing Liza field at the Uaru well, on the Stabroek Block.

This new discovery coupled with all other discoveries brings the estimated resource for the Stabroek Block to more than eight billion oil-equivalent barrels.

“The Co-operative Republic of Guyana welcomes this new discovery, which follows closely on the heels of the start of oil production on December 20, 2019.  All Guyanese should welcome this new discovery and should begin to appreciate that the nation is on the cusp of major economic transformation and sustained development.  The Department of Energy remains committed to working with its partners and ecosystem of agencies, to ensure that the benefits from the sector, both direct and indirect, redound to every Guyanese,” Dr. Bynoe said.

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

“The petroleum sector is already stimulating increased employment and expanded services, and we are expecting a ramping up of these benefits during the Decade of Development (2020-2029) which is aimed at ensuring that the country’s petroleum resources are utilised to improve citizens’ quality of life and retaining greater value from the sector for Guyana and Guyanese,” Dr. Bynoe said.

Additionally, by the second quarter of 2020 production from the Liza Phase 1 development will produce up to 120,000 barrels of oil daily utilizing the floating production storage and offloading vessel (FPSO), Liza Destiny. Under the Production Sharing Agreement (PSA) governing the Stabroek Block, the Government of the Cooperative Republic of Guyana will be receiving at a minimum, 2 per cent royalty on all oil produced in the Block plus 12.5 per cent profit oil. As the capital and operating costs are liquidated, Guyana’s share of profit oil will increase.

“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.”

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.

- Advertisement -
- Advertisement -

OilNOW TV

Latest News

Chevron shuts in Tamar gas platform offshore Israel as violence escalates

(S&P Global Platts) US major Chevron has shut in the Tamar gas platform offshore Israel amid an escalation of...

Giant Yellowtail FPSO will produce up to 7.5 million barrels of oil per month during early stage of operations

The offshore developments in Guyana are growing both in number and capacity, with the fourth proposed project at Yellowtail being designed to utilize a...

Fabrication of topsides for Guyana’s 3rd oil production vessel underway in Singapore

Work on Guyana’s 3rd oil production vessel is progressing on schedule in Singapore, SBM Offshore said in its Q1 trading update on Wednesday. The...

Proposed, sanctioned offshore developments to deliver over 800,000 bpd by 2025

Guyana has gone from having no known oil resources just 6 years ago to now holding over 9 billion barrels of oil equivalent. The...

Mærsk Developer to drill additional appraisal well for Total in Suriname

Total E&P Suriname, Suriname Branch has exercised an option to add the drilling of one additional appraisal well in Suriname’s Block 58 to the...

More Articles Like This