ExxonMobil’s oil drilling ship, Deepwater Champion

US oil giant ExxonMobil is expected to commence its second round of drilling for oil in the Stabroek Block as soon as the first quarter of 2016.

Jeff Simons, Country Manager of the oil company was quoted in a section of the media as saying that they are presently reexamining the contracts for the supply of material to set up the exploration well.

However, he could not give a specific date for the commencement of the second round of drilling but iterated that it will be early next year.

ExxonMobil has removed its oil drilling ship, the Deepwater Champion, from offshore Essequibo in June leaving the public to believe that the aggression from Venezuela might have influenced the decision.

Nevertheless, Government had failed to inform the Guyanese public of this development. It would have been following the departure of ExxonMobil’s rig that, for instance, Venezuela confirmed the cancellation of the PetroCaribe rice deal with Guyana.

It is believed that the arrival of ExxonMobil Deepwater Champion oil drilling rig/ship precipitated Venezuela’s latest revival of its controversy over Guyana’s western border.

Simons had told Guyana Times that the Deepwater Champion had completed its course of operation and the ongoing border controversy between Venezuela and Guyana regarding ownership of the Essequibo and the waters off its shore did not pressure the company into removing the vessel.

In May, ExxonMobil announced its findings of more than 295 feet of high-quality oil-bearing sandstone reservoirs. Recent reports predict that this find could see Guyana’s Gross Domestic Product (GDP) escalating to 12 times its current figure, which is transformational for any developing country.

Guyana’s GDP stands at around US$3.23 billion. In early March, the oil and gas company, one of the largest in the world, was warned by the Spanish-speaking nation to refrain from going ahead with its planned exploratory drilling activity, on a concession awarded by Guyana offshore its Essequibo Coast.

Venezuela has repeatedly laid claim to the area being explored, ignoring an 1899 Arbitral Tribunal Award, which was declared as the full and final settlement of the boundary between the two South American nations. Following the discovery of oil-bearing rocks in the area, Venezuela’s aggression grew stronger.

However, ExxonMobil assured that it will not be intimidated by the country’s claims and will continue its work in Guyana’s offshore waters. The multibillion-dollar oil exploration project, which is expected to be executed over 10 years, got underway in early March.