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More oil discovered off Guyana

More oil discovered off Guyana
Guyana’s major oil discoveries is expected to be a boost for that country and the regional economy. (Internet image)

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GEORGETOWN – The Guyana government on Wednesday welcomed the announcement by the United States-based oil and energy giant, ExxonMobil, that it made two oil discoveries in the Stabroek block offshore, adding to the previously announced recoverable resource estimate for the block of 10 billion oil-equivalent barrels.

Natural Resources Minister Vickram Bharrat said the government “remains confident” that these two additional discoveries, which add to the 26 commercially feasible finds, will further strengthen Guyana’s position as a country with world-class discoveries of high-quality hydrocarbon.

“Therefore, the government will continue engaging all stakeholders towards the exponential development of these resources for all Guyanese 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,” Bharrat said.

ExxonMobil said that the Fangtooth-1 well encountered approximately 164 feet of high-quality oil-bearing sandstone reservoirs. The well was drilled in 6 030 feet of water and is located approximately 11 miles northwest of the Liza field. The Lau Lau-1 well encountered approximately 315 feet of high-quality hydrocarbon-bearing sandstone reservoirs. The well was drilled in 4 793 feet of water and is located approximately 42 miles southeast of the Liza field.

“Initial results from the Fangtooth and Lau Lau wells are a positive sign for Guyana and continue to demonstrate the potential for the country’s growing oil and gas sector, ExxonMobil and our co-venturers in the Stabroek block,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil.

Bharrat said that the Irfaan Ali administration is also welcoming the announcement that the Liza Unity FPSO is on track to commence production in early 2022, while the Prosperity FPSO vessel for the Payara field is undergoing construction in Singapore for a planned production start-up date in 2024.

He said that the Liza Unity FPSO has a capacity of approximately 220 000 barrels of oil per day, which will complement the Liza Density FPSO currently producing approximately 120 000 barrels of oil per day, branding Guyana as an oil-producing economy to approximately 340 000 barrels of oil per day in 2022.

“The Ministry of Natural Resources and the government of Guyana welcome these two new discoveries offshore Guyana and remain even more committed to the sustainable exploration and development of Guyana’s oil and gas resources.

“In this regard, I would like to reassure all Guyanese and stakeholders that this 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,” Bharrat added. (CMC)