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UK-listed Tullow Oil failed to find oil at yet another well offshore Guyana in what could be its final well drilled in the region where Exxon has found billions of barrels of oil in place.
Tullow Oil plc said on Friday that drilling operations at the Beebei-Potaro exploration well, drilled in the Kanuku license, offshore Guyana, had been completed. The well encountered good quality reservoir in the primary and secondary targets, but both targets were water-bearing, the company said.
Tullow Oil, originally focused on Africa, has seen several failures offshore the Guyana-Suriname basin and is now considering abandoning the area off South America.
“It may be likely that it’s the last well of the Guyana-Suriname basin, or even just from a frontier/high-impact nature” for Tullow, Will Hares, a global energy analyst at Bloomberg Intelligence said on Friday, commenting on Tullow Oil’s latest dismal drilling result.
While Tullow Oil has struggled, U.S. supermajor ExxonMobil has made a string of major discoveries in recent years in Guyana, helping make the country an oil exporter in 2019.
Just last week, Exxon said it had made two more discoveries offshore Guyana, bringing the total discoveries made in the country to 25.
Since the start of the year alone, Exxon has struck oil at seven locations in the Stabroek block off the Guyana coast. The company has more drilling plans for the location, where it is already producing more than 340,000 barrels of crude daily from two floating production, storage, and offloading vessels (FPSO). Exxon and its partners in Guyana—Hess Corp. and CNOOC—plan to expand their oil repertoire by another 220,000 bpd before the end of 2023.
Earlier this year, Exxon approved its fourth offshore project in Guyana, at Yellowtail, which is expected to produce 250,000 barrels per day (bpd) starting in 2025. By 2027, Exxon plans to produce more than 850,000 bpd from Guyana’s offshore fields.
By Charles Kennedy for Oilprice.com
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Charles is a writer for Oilprice.com