Esso Exploration and Production Guyana Limited (EEPGL) is forging ahead with drilling two wells in the Stabroek Block, as part of its ambitious multi-well drilling campaign.
According to the Maritime Administration Department (MARAD), EEPGL will start exploration drilling at the Longtail-2 well from September 21 to October 31. They will be using the MODU Stena Carron, complemented with a number of other vessels, to drill the well which is 106.9 nautical miles from the coast.
Meanwhile, exploration drilling has already started on the Cataback-1 well and will conclude on September 30. For this well, which is located 104.88 nautical miles from the coast of Guyana, the MODU Noble Tom Madden is being used.
Exxon has a high prospect of success at the Longtail-2 well given the past drilling history there. It was only a few months ago that Exxon found 70 metres of high-quality oil reservoirs while drilling at the Longtail-3 well. Longtail-3 followed on the success of Longtail-1, where oil was found by Exxon in 2018.
The Stabroek Block is 6.6 million acres (26,800 square kilometres). EEPGL is the operator, and holds 45 per cent interest in the block. Hess Guyana Exploration Ltd holds 30 per cent interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.
ExxonMobil has said it anticipates that at least six projects offshore Guyana will be online by 2027. 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 19 miles (30 kilometres) southeast of the Liza developments.
The start-up of Liza Phase 2 remains on target for 2022, as the Liza Unity FPSO prepares to sail away from Singapore to Guyana later this year. The Unity FPSO has a production capacity of 220,000 barrels of oil per day at peak rates. The hull for the Prosperity FPSO vessel, the third project at the Payara Field, is complete, and topsides construction activities have commenced in Singapore with a start-up target of 2024.
These new projects continue to drive investment in the Guyanese economy. More than 2300 Guyanese are now supporting project activities on and offshore, which reflects a more than 20 per cent increase since the end of 2019. ExxonMobil and its key contractors have spent approximately US$388 million with more than 800 local companies since 2015.
ExxonMobil recently announced that it found 220 feet (67 metres) of high-quality oil in the Pinktail well offshore Guyana. It was explained that the Pinktail discovery, which was drilled by the Noble Sam Croft drill ship, is 21.7 miles southeast of the Liza Phase 1 project.
Additionally, Exxon was able to successfully appraise the Turbot-1 and 2 wells, where oil was previously found. In the case of the Turbot-2 well, drilling encountered 43 feet (13 metres) of net pay, separate from the oil previously encountered in the Turbot-1 well.