U.S. oil major ExxonMobil said on Tuesday it made an oil discovery at the Uaru-2 well in the Stabroek Block offshore Guyana.
Uaru-2 will add to the previously announced gross discovered recoverable resource estimate for the block, which is currently estimated to be approximately 9 billion oil-equivalent barrels, ExxonMobil said.
Drilling at Uaru-2 encountered approximately 36.7 meters of high quality oil bearing reservoirs including newly identified intervals below the original Uaru-1 discovery. The well was drilled in 1,725 meters of water and is located approximately 11 kilometers south of the Uaru-1 well.
“The Uaru-2 discovery enhances our work to optimally sequence development opportunities in the Stabroek Block,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil. “Progressing our industry-leading investments and well-executed exploration plans are vital in order to continue to develop Guyana’s offshore resources that unlock additional value for the people of Guyana and all stakeholders.”
“The Uaru-2 discovery will add to the discovered recoverable resource estimate of approximately 9 billion barrels of oil equivalent,” said John Hess, CEO of Hess Corporation, a partner in the Stabroek Block. “We expect to have at least six FPSOs on the Stabroek Block by 2027, with the potential for up to 10 FPSOs to develop the current discovered recoverable resource base.”
In January 2020, ExxonMobil announced that Uaru-1 was the 16th discovery in the prolific 26,800-square-kilometer Stabroek Block. The well encountered approximately 29 meters of high-quality oil-bearing sandstone reservoir and was drilled in 1,933 meters of water.
In March 2021, ExxonMobil secured a sixth drillship, the Noble Sam Croft, for exploration and evaluation drilling activities offshore Guyana. A fourth project, Yellowtail, has been identified within the block with anticipated start up in late 2025 pending government approvals and project sanctioning. This project will develop the Yellowtail and Redtail fields, which are located about 30 kilometers southeast of the Liza developments.
ExxonMobil and its partners anticipate at least six projects online by 2027 and sees potential for up to 10 floating production, storage and offloading units (FPSO) to develop its current recoverable resource balance.
Production from the Liza Phase 1 development on the Stabroek Block utilizing the Liza Destiny FPSO reached its nameplate capacity of 120,000 gross barrels of oil per day in December 2020 and remained at this level during the first quarter of 2021.
In mid April, production from the Liza Destiny was curtailed for several days after a minor leak was detected in the flash gas compressor discharge silencer. Production has since ramped back up and is expected to remain in the range of 100,000-110,000 gross barrels of oil per day until repairs to the discharge silencer are completed in approximately three months. Following this repair, production is expected to return to, or above, nameplate capacity.
Startup of Liza Phase 2 remains on track for early 2022 utilizing the Liza Unity FPSO with production capacity of approximately 220,000 gross barrels of oil per day. The Liza Unity FPSO prepares for sail away from Singapore to Guyana later this year.
A third development at the Payara Field was sanctioned in September 2020 that will utilize the Prosperity FPSO with production capacity of 220,000 gross barrels of oil per day; first oil is expected in 2024. The hull for the Prosperity FPSO is complete, and topsides construction activities have commenced in Singapore.
ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25% interest.
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