GEORGETOWN – More than a month after announcing that it has successfully found more oil in waters offshore Guyana, ExxonMobil is getting ready to conduct more exploration and drilling in another one in three weeks time.
According to the Maritime Administration Department (MARAD) in a notice published in Kaieteur News, on September 1st, Esso Exploration and Production Guyana Limited (EEPGL) will commence a 3D/4D Seismic Survey within the Stabroek Block of the Guyana Maritime Zone.
The activities are expected to last up to five months.
At least three vessels will be used in the area, about 86 nautical miles from the shores of Guyana and will cover an area of over 2,200 square kilometers.
Meanwhile, starting next Monday, Esso, the local exploration company of the US-owned ExxonMobil, which holds part of the rights to the concessions, is set to commence a three-month drilling programme at the Turbot-1 well site.
At least five vessels, including the Stena Carron, M/V Cat Island, M/V/ Fast Titan, M/V Hannah Chouest and HOS Commander, will be on location about 107 nautical miles from Guyana.
The latest drilling will come after it was announced late last month by ExxonMobil that it has successfully drilled the Payara-2 well in its concessions, encountering 59 feet of high-quality, oil-bearing sandstone reservoirs.
This increased the total Payara resource to approximately 500 million oil-equivalent barrels.
Payara is located only 12 miles from the Liza phase 1 project, which ExxonMobil is hoping to start production from in three years’ time.
Exxon said that these positive well results increase the estimated gross recoverable resource for the Stabroek Block to between 2.25 billion oil-equivalent barrels and 2.75 billion oil-equivalent barrels.
“Payara-2 confirms the second giant field discovered in Guyana,” said Steve Greenlee, president of ExxonMobil Exploration Company.
“Payara, Liza and the adjacent satellite discoveries at Snoek and Liza Deep will provide the foundation for world class oil developments and deliver substantial benefits to Guyana.
“We are committed to continue to evaluate the full potential of the Stabroek Block.”
The Stabroek Block is 6.6 million acres (26,800 square kilometers).
Esso Exploration and Production Guyana Limited is operator and holds 45 per cent interest in the Stabroek Block.
Hess Guyana Exploration Ltd. holds 30 per cent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 per cent interest.
Guyana is set to collect two percent in royalties and a 50/50 share in profits.
The two per cent at today’s prices is estimate to be about $7B.
However, there are major concerns over that $50/50 share of profits with critics saying that it will be awhile before Guyana sees any real benefits from the oil.
Government has refused to release the production licence agreement, saying that there are confidentiality clauses.
In all, Exxon and its partners want to drill at least 17 wells in the Stabroek block.