The number of oil and…
Oil prices rose this week…
ExxonMobil has made another oil discovery on the Stabroek Block offshore Guyana, its 20th significant crude discovery on the block, the U.S. supermajor and its partner on the block, Hess Corp, said on Thursday.
The Pinktail well on the Stabroek Block found high-quality hydrocarbon-bearing sandstone reservoirs, Exxon said, adding that the latest discovery lies some 21.7 miles southeast of the Liza Phase 1 project, which began production in December 2019, and 3.7 miles southeast of the Yellowtail-1 discovery.
The Pinktail discovery will add to the previous recoverable resource estimate of approximately 9 billion oil-equivalent barrels, Exxon says.
“We are happy to announce our 20th significant discovery on the Stabroek Block, which will add to the discovered recoverable resource estimate of more than 9 billion barrels of oil equivalent,” Hess Corp CEO John Hess said in a statement.
Exxon is the operator of the Stabroek Block with a 45-percent interest, while Hess holds 30 percent and CNOOC Petroleum Guyana Limited holds 25 percent.
“Our exploration successes continue to increase the discovered resource and will generate value for both the Guyanese people and our shareholders,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil.
Exxon and Hess believe that offshore Guyana could allow for at least six projects online by 2027 and see the potential for up to 10 projects to develop the current recoverable resource base in the waters of the South American country.
In less than five years, Exxon and its partners in the Stabroek Block made more than a dozen quality discoveries on the block, making Guyana the newest oil-producing nation in December 2019.
The Liza Phase 1 offshore project—Guyana’s first oil-producing project led by ExxonMobil—currently produces 120,000 bpd.
The Liza Phase 2 development project is expected to begin production in early 2022. The development is expected to have a capacity to produce around 220,000 barrels of oil per day, Exxon and Hess say.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.