Exxon found “high quality” reservoirs offshore Guyana in 2020 – Hess reveals

0

ExxonMobil’s partner in the Stabroek block, Hess Corporation, has revealed that two high quality reserves offshore Guyana were found in 2020 around the time the company was appraising the Yellowtail-2 oil well.

This information was contained in Hess’ second quarter financial filings, in which the company reported a $320 Million loss and also the impact that COVID-19 travel restrictions have had on the drilling operations in the block.

The company revealed that the Noble Don Taylor commenced drilling of the Redtail exploration well, which is 1.25 miles northwest of Yellowtail-1, in July. The other two drillships, the Noble Bob Douglas and the Noble Tom Madden, are drilling and completing Liza Phase 1 and Phase 2 development wells, Hess said in its quarterly report.

Hess, co-venturer with a 30% stake in the Stabroek block, said ExxonMobil is also currently commissioning water injection equipment and bringing natural gas injection fully online that should enable the Liza Destiny floating production, offloading, and storage vessel (FPSO) to reach its capacity of 120,000 gross bopd in August.

“Phase two of the Liza Field development, which will utilise the Liza Unity FPSO with an expected capacity of 220,000 gross bopd, remains on target to achieve first oil in early 2022,” Hess said

The company added that as previously announced some activities for a third development, Payara, with expected production capacity of 220,000 gross bopd, have been deferred pending government approval of the project creating a potential delay in production startup of six to twelve months.

In January of this year, Exxon had made its 16th discovery offshore Guyana at the Uaru exploration well. That discovery had catapulted Exxon’s estimated recoverable oil to more than eight billion barrels of oil equivalent.