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.
