Guyana’s Stabroek Block is continuing to prove itself as a good investment for a consortium of oil companies as they announced today a further discovery of approximately 10 billion barrels of oil equivalent.
The petrochemicals were discovered at the Fangtooth-1 and Lau Lau-1 wells.
In statements to the media, ExxonMobil and Hess Corporation said high-quality oil-bearing sandstone reservoirs were discovered at 164 feet (50 meters) in Fangtooth-1 and 315 feet (96 meters) in Lau Lau-1.
The Fangtooth-1 well was drilled in 6,030 feet (1,838 meters) of water by the Stena DrillMAX and it is located approximately 11 miles (18 kilometres) northwest of the Liza Field.
The Lau Lau-1 well was drilled in 4,793 feet (1,461 meters) of water by the Noble Don Taylor and it is located approximately 42 miles (68 kilometres) southeast of the Liza Field.
The Stabroek Block is 6.6 million acres.
ExxonMobil’s affiliate Esso Exploration and Production Guyana Limited 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 holds 25 per cent interest.
“We are excited to announce two more significant discoveries on the Stabroek Block,” John Hess, CEO Hess Corporation, said.
“Positive results at Fangtooth, our first standalone deep exploration prospect, confirm the deeper exploration potential of the Stabroek Block. Both discoveries further underpin our queue of future low cost development opportunities. We continue to see the potential for at least six FPSOs on the Stabroek Block in 2027 with a production capacity of more than 1 million gross barrels of oil per day, and up to 10 FPSOs to develop the discovered resources on the block.”
Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil, stated: “Initial results from the Fangtooth and Lau Lau wells are a positive sign for Guyana and continue to demonstrate the potential for the country’s growing oil and gas sector, ExxonMobil and our co-venturers in the Stabroek block.”
“The Fangtooth discovery is a successful result of our strategy to test deeper prospectivity, and the Lau Lau discovery adds to the large inventory of development opportunities in the southeast part of the Stabroek block. Both discoveries increase our understanding of the resource, our continued confidence in the block’s exploration potential, and our view that the many discoveries to date could result in up to 10 development projects.”
Guyana’s Minister of Natural Resources, Vickram Bharrat, is equally ecstatic about the development.
“The Government of Guyana remains confident that these two additional discoveries, which add to the twenty-six commercially feasible finds, will further strengthen Guyana’s position as a country with world-class discoveries of high-quality hydrocarbon,” he said in a statement.
“Therefore, the Government will continue engaging all stakeholders towards the exponential development of these resources for all Guyanese while maintaining a social, economic, and environmental balance. In addition, the Government of Guyana is continually examining possibilities to strengthen oversight and management of the exploration programmes of all operators to further expand the sector through commercial discoveries.”