ExxonMobil’s announcement of three new discoveries at the Stabroek Block offshore Guyana in April is driving a massive accumulation of hydrocarbon resources offshore the South American country.
Hess Corporation, a 30% stakeholder in the Stabroek Block, said this latest success reinforces the view that the Guyana resources will continue to grow, delivering significant low-cost, low-carbon barrels.
“[The three new discoveries] show how massive this accumulation is” offshore Guyana, said Greg Hill, President and Chief Operating Officer of Hess. “And it just keeps getting bigger and better as we continue to grow.”
On April 26, ExxonMobil announced discoveries at Barreleye, Lukanani and Patwa. The new finds, including Fangtooth and Lau Lau announced earlier this year, saw the oil major increasing its estimate of the recoverable resource for the Stabroek Block to nearly 11 billion oil-equivalent barrels.
“How and when these resources will get developed [will] be a function of appraisal drilling results and development studies, but we are very pleased with the results of all of the wells that we’ve seen this year,” Hill said, adding the five total discoveries so far for 2022 have “met or exceeded all of our expectations.”
Exxon currently has four sanctioned projects offshore Guyana. Liza Phase 1 is producing approximately 130,000 barrels per day using the Liza Destiny floating production storage and offloading (FPSO) vessel. Liza Phase 2, which started production in February, is steadily ramping up to its capacity of 220,000 barrels per day using the Liza Unity FPSO. The third project, Payara, is expected to produce 220,000 barrels per day. Construction of its production vessel, the Prosperity FPSO, is running approximately five months ahead of schedule with start-up likely before year-end 2023. The fourth project, Yellowtail, is expected to produce 250,000 barrels of oil per day when the One Guyana FPSO comes online in 2025.
SBM Offshore has been contracted to build, operate and maintain all the FPSOs so far for Exxon’s approved Stabroek Block developments.