Exxon Mobil Corp. (NYSE: XOM) said Jan. 7 that it has begun drilling the Haimara-1 exploration well offshore Guyana, the first of two planned wells in January. The Stena Carron drillship is drilling the well, which is located 31 km (19 miles) east of the Pluma-1 discovery in the southeast Stabroek Block.

The Noble Tom Madden drillship is expected to drill the second well, Tilapia-1, about 5 km (3 miles) west of the Longtail-1 discovery. The Tilapia-1 well is located in the growing Turbot area.

“We continue to prioritize high-potential prospects in close proximity to previous discoveries in order to establish opportunities for material and efficient development,” said Steve Greenlee, president of ExxonMobil Exploration Co. “Like the Liza and Payara areas, the Turbot area is on its way to offering significant development options that will maximize value for Guyana and our partners.”

Exxon Mobil is progressing the Liza Phase 1 development, which has moved into its peak execution phase ahead of expected startup in early 2020. Drilling of development wells in the Liza Field is continuing using the Noble Bob Douglas drillship, subsea equipment is being prepared for installation, and the topside facilities modules are being installed on the Liza Destiny FPSO vessel in Singapore.

Preparations are underway for the commencement of pipe-laying activities in the Liza Field in the spring. The Liza Destiny FPSO is expected to sail from Singapore to arrive offshore Guyana in the third quarter of 2019.

The potential exists for at least five FPSOs on the Stabroek Block producing more than 750,000 barrels of oil per day (bbl/d) by 2025. Liza Phase 2 is expected to start up by mid-2022. Pending government and regulatory approvals, project sanction is expected first-quarter 2019 and will use a second FPSO designed to produce up to 220,000 bbl/d. Sanctioning of a third development, Payara, is also expected in 2019 with start up as early as 2023.

Exxon Mobil also plans to deploy a seismic vessel operated by Petroleum Geo-Services (PGS) to the Turbot area to acquire 4-D seismic data similar to a 4-D campaign conducted in the Liza area in 2017. A second PGS vessel has been released after seismic acquisition activities were suspended on Dec. 22 when vessels were approached by the Venezuelan navy in the northwest portion of the Stabroek Block.

Drilling and development operations offshore Guyana are unaffected by the incident, which occurred more than 110 k, from the Ranger discovery, the closest of 10 discoveries made by Exxon Mobil in the southeast section of the Stabroek Block.

Exxon Mobil operates the Stabroek Block offshore Guyana under license from the government of Guyana. The acquisition of seismic data was being conducted under license from the government of Guyana in the country’s exclusive economic zone. Exxon Mobil is evaluating next steps for the seismic program.

Throughout its activities, Exxon Mobil continues to emphasize and promote direct benefit to local business. More than 50% of the Guyana affiliate’s employees, contractors and subcontractors are Guyanese, a number that will continue to grow as operations progress. Exxon Mobil, its partners and its contractors spent about US$65 million with more than 300 local suppliers during the first three quarters of 2018. The Centre for Local Business Development, established by ExxonMobil in 2017 to promote the establishment and growth of small- and medium-sized local businesses, continues to enable access to training and capacity-building. More than 1300 local businesses have registered with the center.

ExxonMobil 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 Nexen Petroleum Guyana Limited holds 25% interest.

Offshore