ExxonMobil makes new discovery offshore Guyana

ExxonMobil has announced its 18th offshore Guyana crude oil discovery at the Redtail-1 well, Kallanish Energy reports.

That discovery will add to the 8 billion oil-equivalent barrels projected from the Stabroek Block.

“Our Stabroek Block exploration program continues to identify high-quality reservoirs in close proximity to previous discoveries, establishing efficient opportunities for new projects in Guyana,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil, in a statement.

“Developing these projects remains an integral part of ExxonMobil and our co-venturers’ long-term growth plans and a source of significant value for Guyana,” he said.

Redtail-1 encountered 232 feet (70 meters) of high-quality oil-bearing sandstone and was drilled in 6,184 feet (1,878 meters) of water, ExxonMobil said.

The well is located about 1.5 miles or 2.5 kilometers northwest of the Yellowtail oil discovery. Yellowtail-2 is still being evaluated.

The Stabroek Block covers 6.6 million acres or 26,800 square kilometers.

ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the operator and holds a 45% stake in the Stabroek Block.

Hess Guyana Exploration Limited holds a 30% interest and CNOOC Petroleum Guyana Limited , a subsidiary of CNOOC, has a 25% interest.

ExxonMobil made its offshore discovery in Guyana in 2015 and started production in December 2019. That operation can produce up to 120,000 barrels per day.

The company is developing the Liza Phase 2 Project that will begin operations in 2022 and produce up to 220,000 barrels per day. A floating production vessel is being built in Singapore.

A third production vessel for the Payara development in offshore Guyana is on hold pending government approval.

This post appeared first on Kallanish Energy News.