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ExxonMobil makes fifth Guyana discovery

By  Thursday, 05 October 2017 13:53

ExxonMobil has further confirmed the potential of the Stabroek block offshore Guyana with a fifth oil discovery in the Turbot-1 well.

Stena Carron drillship. Image from Stena Drilling.

ExxonMobil affiliate Esso Exploration and Production Guyana started drilling the well on 14 August,  and encountered a 75ft (23m) reservoir of high-quality, oil-bearing sandstone in the primary objective, ExxonMobil reported today (5 October).

Turbot-1 lies in the southeastern portion of the Stabroek Block, approximately 30mi (50km) to the southeast of the Liza phase one project.

Drilled by the Stena Carron drillship in 5912ft (1802m) of water, the well was safely drilled to 18,445ft (5,622m) on 29 September. Stena Carron will next drill the Ranger prospect, and ExxonMobil plans to drill an additional well on the Turbot discovery next year.

The Stabroek Block is 6.6 million acres (26,800sq km). 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 Nexen Petroleum Guyana Limited holds 25% interest.

ExxonMobil’s previous discoveries on the Stabroek block include Liza, Payara, Snoek and Liza Deep.

Earlier this year, ExxonMobil and partner Hess made the final investment decision for $4.4 billion first phase development of the Liza field offshore Guyana. SBM Offshore has awarded Keppel Shipyard the contract to convert a very large crude carrier into a floating production, storage, and offloading vessel that will be deployed at the Liza field in the Stabroek block.

Earlier today, Keppel Shipyard won a floating production storage and offloading vessel conversion contract from SBM Offshore for ExxonMoibil's Liza development.

The Turbot-1 well indicates that deepwater can still be attractive, said Pablo Medina, Wood Mackenzie's senior analyst, Latin America Upstream, in a 5 October statement. After today's announcement, ExxonMobil's Liza and Payara complex might approach the 2 billion barrel mark in commercial reserves.

This discovery also puts Guyana on the map as the country currently does not produce any oil. Wood Mackenzie expects around 350,000-400,000 b/d of oil production by 2026, making Guyana one of top oil producers in Latin America, said Medina.

"ExxonMobil's Latin America footprint has increased significantly with its recent streak of discoveries in Guyana and its aggressive bidding in Brazil's latest licensing round," Medina added.

Read more:

Updated: Exxon, Hess move forward with Liza

Keppel lands ExxonMobil Liza FPSO conversion

Exxon's hit at Payara-2 ups resources

Updated: Exxon in fresh Guyana discovery

Payara pays off for Exxon in Guyana

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2018-09-23 01:09:22pm