Exxon in 16th strike now increasing known reserves to 8 billion barrels

…….ups estimate to 8 billion barrels in Stabroek Block

EXXONMOBIL has increased its resource estimate for the Stabroek Block to over 8 billion oil-equivalent barrels as the company announced its 16th oil discovery at the Uaru well on Monday.

“The Co-operative Republic of Guyana welcomes this new discovery, which follows closely on the heels of the start of oil production on December 20, 2019. All Guyanese should welcome this new discovery and should begin to appreciate that the nation is on the cusp of major economic transformation and sustained development. The Department of Energy remains committed to working with its partners and ecosystem of agencies, to ensure that the benefits from the sector, both direct and indirect, redound to every Guyanese,” Director of the Department of Energy (DE), Dr. Bynoe said.

The Uaru well encountered approximately 94 feet (29 metres) of high-quality oil-bearing sandstone reservoir and was drilled in 6,342 feet (1,933 metres) of water.

It is located approximately 10 miles (16 kilometres) northeast of the Liza field, which started oil production in December 2019. Dr. Bynoe added: “The petroleum sector is already stimulating increased employment and expanded services, and we are expecting a ramping-up of these benefits during the Decade of Development (2020-2029) which is aimed at ensuring that the country’s petroleum resources are utilised to improve citizens’ quality of life and retaining greater value from the sector for Guyana and Guyanese.”
The new estimate represents a 2 billion barrel increase from the previous estimate backed by the successive and successful oil finds of the U.S oil giant and its partners. Exxon’s previous find was at the Mako-1 well in the Stabroek Block, announced in December 2019. It encountered approximately 164 feet (50 metres) of a high-quality oil-bearing sandstone reservoir in the well drilled in 5,315 feet (1,620 metres) of water.

“With recent high-quality finds at Tripletail and Mako contributing to our recoverable resources, our investments will continue to provide benefits for the people of Guyana,” Senior Vice President of Exploration and New Ventures at ExxonMobil, Mike Cousins said.
“The Uaru discovery is another positive step as we begin a new decade with the Co-operative Republic of Guyana and our co-venturers.”

Exxon is expected to release its fourth-quarter (2019) financial and operating results on Friday, January 31, 2020 through a webcast by Chairman and Chief Executive Officer, Darren Woods and Vice President and Secretary, Neil Hansen.

The DE stated that by the second quarter of 2020, production from the Liza Phase 1 development will produce up to 120,000 barrels of oil daily utilizing the Floating Production Storage and Offloading Vessel (FPSO), Liza Destiny.

Under the Production Sharing Agreement (PSA) governing the Stabroek Block, the Government of the Cooperative Republic of Guyana will be receiving at a minimum, 2 per cent royalty on all oil produced in the Block plus 12.5 per cent profit oil. As the capital and operating costs are liquidated, Guyana’s share of profit oil will increase.

Meanwhile, the Liza Unity FPSO, which will be employed for the second phase of Liza development and will have a production capacity of 220,000 barrels of oil per day, is under construction and expected to start production by mid-2022.

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