Exxon Mobil Tacks On Another Discovery Offshore Guyana

Exxon Mobil Corp. and offshore Guyana partners Hess Corp. and CNOOC Ltd. continue their success with a new oil discovery in the Stabroek Block.

The discovery at the Yellowtail-1 well made in the Turbot area encountered about 89 m (292 ft) of high-quality oil-bearing sandstone reservoir and was drilled to a depth of 5,622 m (18,445 ft) in 1,843 m (6,046 ft) of water.

Yellowtail-1 is the group’s 13th discovery on the Stabroek Block and fifth discovery in the Turbot area.

RELATED: Exxon Mobil Reaches 12 Discoveries Offshore Guyana

The Turbot area is now expected to become a major development hub, according to separate releases by Exxon Mobil and Hess.

“As the fifth discovery in the greater Turbot area, it underpins another major development hub,” John Hess, CEO of Hess, said in a statement.

The Yellowtail-1 well is located about 10 km (6 miles) northwest of the Tilapia discovery made in February in the Turbot area.

“Similar to the Liza area, successive discoveries in the Turbot area have continuously grown its shared value,” Mike Cousins, senior vice president of ExxonMobil Exploration and New Ventures, said in a statement. “Our success here can be attributed to our industry-leading upstream capabilities, the strength of our partnerships and our ongoing commitment to growing Guyana’s offshore potential.”

The Noble Tom Madden began drilling the Yellowtail well on March 27 and will drill the Hammerhead-2 well next.

Exploration and development activities continue at other locations on the Stabroek Block. The Stena Carron is currently completing a well test at the Longtail-1 discovery and upon completion will next drill the Hammerhead-3 well.

Later in 2019, the Stena Carron will drill a second well at the Ranger discovery. The Noble Bob Douglas drillship is currently completing development drilling operations for the Liza Phase 1 development.

Exxon Mobil is also evaluating plans to add another exploration drillship, bringing the number of drillships offshore Guyana to four.

The Stabroek Block is 26,800 sq km (6.6 million acres). Exxon Mobil affiliate Esso Exploration and Production Guyana Ltd. is operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Ltd., a wholly-owned subsidiary of CNOOC, holds 25% interest.

The Yellowtail-1 discovery adds to the previously announced estimated recoverable resource of about 5.5 billion oil-equivalent barrels on the Stabroek Block.

Exxon Mobil has previously said there is potential for at least five FPSO vessels on the Stabroek Block producing more than 750,000 barrels per day (bbl/d) of oil by 2025.

Startup of the Liza Phase 1 development is on track to begin by first-quarter 2020 and will produce up to 120,000 bbl/d of oil utilizing the Liza Destiny FPSO, which is expected to arrive in country in the third quarter.

Liza Phase 2 is expected to startup by mid-2022. A final investment decision is expected soon subject to government and regulatory approvals. Upon approval, the project plans to use the Liza Unity FPSO to produce up to 220,000 bbl/d. Sanctioning of a third development, Payara, is also expected in 2019, with startup projected for 2023.