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Another Big Oil Find Off Guyana,  #19

by: - January 29, 2020
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(Caribbean360) US oil and gas giant ExxonMobil has made its 16th oil discovery offshore Guyana, bringing the total to 19.

The latest new discovery which was announced yesterday, was made ten miles northeast of the first producing project, the Liza field at the Uaru well, on the Stabroek Block. It came just days after Guyana’s first shipment of crude oil – 1 million barrels of light crude – was sent off to the United States.

ExxonMobil said it hopes to start production on the latest oil discovery by 2023, and that it planned to deploy a fifth drillship this year for exploration and appraisal of Guyanese resources.

The Department of Energy said the new find, coupled with all other discoveries, brings the estimated resource for the Stabroek Block to more than eight billion oil-equivalent barrels. And the finds have collectively made Guyana’s 6.6 million-acre Stabroek Block the largest crude discovery of recent years.

“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 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 DoE, Dr Mark Bynoe said.

The Uaru well encountered approximately 94 feet of high-quality oil-bearing sandstone reservoir. The well, drilled in 6,342 feet of water, is located approximately 10 miles northeast of the Liza field, which started oil production in December 2019.

According to Dr Bynoe, “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”.

This is Guyana’s third discovery after the country commenced oil production on December 20, 2019.

According to Forbes magazine, ExxonMobil expects about 750,000 daily barrels of production – more than the daily production of India – from the Stabroek Block by 2025, and Credit Suisse in a recent bulletin said that figure “is very likely to be raised”.