ExxonMobil Extends its Run of Successes Off Guyana With Two New Wells
ExxonMobil has reported new successes in its exploration campaign off the coast of Guyana, a previously-undeveloped region which is central to the American oil major's plans.
Two new wells in Exxon's Stabroek Block E&P lease area, dubbed Seabob and Kiru-Kiru, yielded promising early results. Seabob encountered 130 feet of high quality hydrocarbon-bearing sandstone, and Kiru-Kiru encountered about 100 feet of the same.
“ExxonMobil and its partners continue to accelerate exploration, development and production activities for the benefit of all stakeholders, including the people of Guyana,” said Liam Mallon, president of ExxonMobil Upstream. “The resources we are investing in and discovering offshore Guyana will provide safe, secure energy for global markets for decades to come.”
The company’s 2022 investment plans include further exploration drilling. Two FPSO vessels operating off Guyana - Liza Destiny and Liza Unity - are now producing more than 340,000 barrels of oil per day.
A third project, Payara, is expected to produce 220,000 barrels per day on its own when it comes online. Construction on its production vessel, the Prosperity FPSO, is five months ahead of schedule and start-up will likely happen before the end of 2023. The fourth sanctioned project, Yellowtail, is expected to produce 250,000 barrels per day when it comes online in 2025.
These projects cover just part of the 25-plus successful wells that Exxon has drilled in the Stabroek Block, and the company's most recent estimate of its potential comes in at 11 billion barrels of oil equivalent.
By 2027, Exxon hopes to be producing 1.2 million barrels of oil equivalent per day from the Stabroek Block, enough to meet roughly one percent of the world's current demand. At current market pricing, this would be worth more than $40 billion a year in revenue.