President of ExxonMobil Guyana, Alistair Routledge on Tuesday reaffirmed the company’s commitment to the South American nation as two major oil discoveries last week boosted the oil giant’s flourishing portfolio in the prolific Stabroek block.
Addressing attendees at the first Caribbean Virtual Oil and Gas Summit (CARIVS), Routledge affirmed that the Stabroek block continues to be a core investment priority for Exxon and, in keeping with its confidence in Guyana, the company expects to deploy its fifth drillship— the Noble Sam Croft—in the country come December.
“This kind of investment in an exploration and appraisal programme is increasingly rare for companies in the current market conditions and it shows the commitment we have made to Guyana. We expect to be here for several decades and that perspective guides our investment decisions today,” Routledge said.
The company’s offshore discoveries in the Stabroek block have risen rapidly, and the newly found, high quality oil bearing Redtail and Yellowtail-2 reservoirs raised to 18 the total number of discoveries since 2015. The quantity of these finds and the quality of the oil in the reservoirs underscore Guyana’s key role in Exxon’s future development plans.
Earlier this year, the company increased the estimated reserves of the Stabroek Block to over 8 billion oil equivalent barrels. This estimate is expected to grow even more when its 16th, 17th and 18th discoveries this year—Urau, Yellowtail-2 and Redtail —are taken into consideration.
“These…discovered resources, are a necessary foundation for future development opportunities in Guyana which are a key part of our long term growth plans and have the potential to be a source of significant value for ExxonMobil, our partners, and especially, Guyana,” Routledge said.
“It’s an incredibly complex process built on years of experience,” he added, explaining that the foundation for these discoveries was the company’s upfront investment, as well as the high quality of its proprietary seismic data and proprietary technology.
Routledge also told the CARIVS Summit that Exxon is drilling a well at the Kaieteur block adjacent to the Stabroek block at Tanager-1, which he described as a “unique and exciting” prospect.
If the Tanager well is a success, he said it will open multiple new opportunities in Guyana’s oil and gas sector.
ExxonMobil is also preparing to drill its first well on the Canje Block, early next year.