Chevron expects that Guyana’s prolific Stabroek Block could hold more than its current estimate of 11 billion barrels of oil equivalent and plans to work with operator ExxonMobil to test deeper reservoirs, Vice Chairman, Mark Nelson said. This is according to a Reuters report on Wednesday.
Nelson told investors at the company’s annual Investor Day in New York that the resource base at Stabroek Block could get bigger, though Chevron has not issued a formal forecast. “When you think about 11 billion barrels, big fields getting bigger, although we haven’t forecast it, I would expect upside,” he said.
He added that Chevron sees further potential in unexplored sections of the basin. “There’s some deeper reservoirs to test, and we look forward to working with the partner to do that,” he said, according to Reuters.
Further, the Chevron executive said everything the company shared at the event reflects the operator Exxon’s view.
Exxon executives have previously indicated that 11 billion barrels is the best available for the resource estimate. For much of the period after the landmark Liza-1 discovery, Exxon had reported a success rate of about 90%. While exploration activity continues, commercial discoveries in recent years have been less frequent.
The resources discovered have so far underpinned four producing projects. Earlier on Wednesday, Exxon said production at Stabroek had reached 900,000 barrels per day (b/d) and that output is expected to climb to 1.7 million b/d across eight planned developments by 2030.
Chevron gained a 30% stake in the offshore Stabroek Block earlier this year through its acquisition of Hess, following a protracted legal dispute with Exxon related to the acquisition of the stake.
Exxon, which operates and holds a 45% interest in the block, had welcomed Chevron to the acreage despite expressing disappointment in the ruling.
China’s CNOOC owns a 25% stake.
