Exxon discovers oil off Guyana coast

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Sunil

The discovery is located in the Stabroek Block off a border region that is claimed by Venezuela in a territorial controversy dating back more than a century, even though the area functions in practice as Guyanese territory.

The government said it is “optimistic of a hydrocarbon discovery of commercial quantities which will further transform Guyana's economy.”

Exxon's country manager for Guyana said the company was still evaluating the commercial viability of the discovery.

A Venezuelan foreign ministry official said the ministry was aware of the situation but had no immediate comment.

The exploration project is led by Exxon, with Hess Corp and a subsidiary of China National Offshore Oil Company also participating.

Exxon signed an agreement with Guyana to explore the 26,800 square kilometer block, 160 to 320 kilometers offshore, in 1999.

Guyana in 2013 said Venezuela's navy evicted a ship used by Texas-based Anadarko Petroleum Corp to explore for oil in the offshore Roraima block. Guyana called the incident a security threat and Venezuela described it as a violation of its territory.

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SunilAdmin

According to Guyanese Online, Reuters, MercoPress and other news organizations, an ExxonMobil subsidiary and its partners have discovered hydrocarbons offshore Guyana, but the Guyanese government reports that it is not sure if the discovery can be confirmed in commercial quantities.

The Liza-1 exploration well on the Stabroek Block has encountered hydrocarbons, according to several reports. Esso Exploration and Production Guyana (EEPGL), an affiliate of ExxonMobil, holds 45% interest, Hess Guyana Exploration holds 30% and CNOOC Nexen Petroleum Guyana Limited holds 25%. Exxon signed an agreement with Guyana to explore the 26,800sq km block in 1999.

The partners engaged Transocean’s Deepwater Champion in March 2015, at a dayrate on the current contract of US$708,000, to explore the offshore area about 120mi off Guyana. The Deepwater Champion can work in 12,000ft of water and reach drilling depths up to 40,000ft. The ship is contracted onsite through this month, according to Transocean.

According to reports, the Guyanese minister of natural resources and the environment, Hon. Robert M. Persaud, said it is too early to confirm whether there are commercial quantities of hydrocarbons, specifically light crude.

The discovery is sited in a border region that has been claimed by Venezuela in a territorial controversy dating back more than 100 years. In fact, in 2013, Anadarko Petrolem encountered challenges when its employed seismic vessel, Teknik Perdana, was detained and subsequently released by the Venezuelan naval forces during seismic acitivties for oil exploration on the Roraima block.

http://www.oedigital.com/engin...f-guyana-coast-maybe

5/15/157:04 PM