Guyana’s next Stabroek Block development could potentially be ExxonMobil’s Longtail discovery, Vickram Bharrat, the country’s Minister of Natural Resources said.
“They are already moving ahead with Hammerhead, and we have heard talks that Longtail will come after that,” he said.
The Longtail-1 discovery in the Stabroek Block was drilled in 2018, encountering approximately 256 feet (78 meters) of high-quality, oil-bearing sandstone reservoir. Drilling at Longtail-3 encountered 230 feet (70 meters) of net pay, including newly identified, high-quality hydrocarbon bearing reservoirs below the original Longtail-1 discovery intervals. Appraisal works were carried out at Longtail-2 but no announcement of a discovery was made.
According to Bharrat, the Longtail development should “produce more gas” than the other Stabroek Block projects. It should be noted though, that Hammerhead also appears to have a high proportion of gas and may see gas being piped to shore before Longtail.
The potential development of Longtail appears in line with the government’s current focus on the gas resources in the Stabroek Block. The current resource estimate stands at 17 trillion cubic feet.
OilNOW reported back in 2018 that a joint development of Longtail, Turbot, Pluma and Tilapia could be on the cards, based on analysis from Wood Mackenzie. The UK-based consultancy firm had said the joint development could deliver around 220,000 barrels of oil per day.
The government recently identified U.S. start-up Fulcrum LNG to work with Exxon to come up with a plan for the development of a standalone gas development. Exxon, Fulcrum, and a Guyana government technical team are expected to deliberate on the potential project, with hopes for an agreement to be signed in 2025.
