Motherload of crude remains at giant Stabroek block: analysts say resources will balloon

By OilNOW -- February 17, 2022 -- 0 -- Source -- OilNOW -- https://oilnow.gy/featured/mot...lloon-says-analysts/

(L – R) Arthur Deakin, Co-Director of Americas Market Intelligence energy practice, Dr. Daniel Yergin, Vice President at IHS Markit, and Schreiner Parker, Rystad Energy’s Vice President for Latin America and the Caribbean.

Analysts across the oil and gas industry agree that even with the massive volumes of hydrocarbon found so far at the 6.6 million acres Stabroek Block, explorers have only scratched the surface and that mega resources are yet to be discovered by ExxonMobil and co-venturers Hess and CNOOC.

Speaking to OilNOW this week at the International Energy Conference, Schreiner Parker, Rystad Energy’s Vice President for Latin America and the Caribbean said the Guyana basin is by far “the hottest exploration basin in the word” and major discoveries are expected to continue.

Exxon has made around 28 discoveries since 2015 at the Stabroek Block, including its most recent success at Fangtooth-1 and Lau Lau-1 announced just last month.

“If we look at the 2022 discovered reserves volumes, Lau Lau we are estimating at 443 million barrels and Fangtooth…230 million barrels,” Parker said, pointing out that in any other country on earth these would be “player makers” but they are now par for the course in Guyana.

While the U.S. oil major has pegged the discovered resources at around 10 billion barrels of oil equivalent so far, analyst say this is much higher, with a lot more to come.

“When you add the volumes from Lau Lau and Fangtooth, we are looking at significantly north of 10 billion…I think we can expect that number to grow significantly during the course of this year and next year as you have more exploration successes,” Parker said.

Meanwhile, Americas Market Intelligence analyst Arthur Deakin said the latest estimate for the Stabroek Block is well over 20 billion barrels of oil equivalent resources.

“We expect it to be more than 20 billion barrels of oil equivalent. And I think it is also very important to consider the amount of gas that has been discovered. So, there’s been mention of 16 trillion cubic feet or at least 20 percent of the resource at Stabroek Block being gas. That’s tremendous,” Deakin told OilNOW.

Dr. Daniel Yergin, Vice President at IHS Markit said the total resources is significantly high with much room for further increases.

“You have heard the 10 billion basin number, but we estimate currently that’s it in excess of 13.5 billion barrels oil equivalent with another yet to find potential 9.3 billion of oil equivalent remaining,” he said. “That makes the ultimate recovery total something like 23 billion of oil recovery and we believe this number is set to raise as more plays and sub-plays are tested.”

Keeping Guyana at the forefront of deepwater development, ExxonMobil gears up for fifth project

By OilNOW -- February 17, 2022 -- 0 -- Source -- OilNOW -- https://oilnow.gy/featured/kee...p-for-fifth-project/

The Liza Unity FPSO

To ExxonMobil Guyana President Allister Routledge, the country is at the “forefront of deepwater development” in the world and the U.S. oil major intends to help it keep that lead as it gears up for the fifth oil development in the Stabroek Block – Uaru-2.

The disclosure was made during his presentation on Wednesday at the International Energy Conference being held at the Guyana Marriot Hotel.

It was back in 2019 that ExxonMobil started production at the Liza Phase 1 development and just recently, production commenced at the second offshore oil development- Liza Phase 2.

The third development, Payara, Routledge said remains on track for a 2024 start up and with the company in the final stages of advancing plans for the Yellowtail development, he added that ExxonMobil Guyana looking at the “optimal sequence of development” to start works on the Uaru-2 development.

Routledge said, “as soon as we finish engaging the government on Yellowtail, we will begin talking about Uaru”.

Natural Resources Minister Vickram Bharrat announced just last week that GY$88 million has been approved in this year’s budget for a firm to review the Uaru FDP.

OilNOW had previously reported that Exxon discovered oil at Uaru-1 in January 2020. The well encountered approximately 94 feet (29 meters) of high-quality oil-bearing sandstone reservoir and was drilled in 6,342 feet (1,933 meters) of water.

And then later in April 2021, the oil major announced another discovery at the Uaru-2 well. Drilling at Uaru-2 encountered approximately 120 feet (36.7 meters) of high-quality oil-bearing reservoirs including newly identified intervals below the original Uaru-1 discovery.

The well was drilled in 5,659 feet (1,725 meters) of water and is located approximately 6.8 miles (11 kilometres) south of the Uaru-1 well.

Already, some $88 million has been set aside in the South American nation’s largest budget to date for a consultancy firm to review the field development plan for Uaru.

The Stabroek Block is 6.6 million acres (26,800 square kilometres). ExxonMobil affiliate, Esso Exploration and Production Guyana Limited (EEGPL) is the operator and holds 45 per cent interest in the Stabroek Block. Hess Guyana Exploration Limited. holds 30 per cent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 per cent interest.