ExxonMobil Makes World-Class Oil Discovery

Published at 08:28AM - 01/07/16

ExxonMobil confirmed a major oil discovery offshore Guyana, of between 800 million and 1.4 billion barrels of oil equivalent.

The announcement follows drilling results from the Liza-2 well, the second exploration well in the Stabroek block.

“We are excited by the results of a production test of the Liza-2 well, which confirms the presence of high-quality oil from the same high-porosity sandstone reservoirs that we saw in the Liza-1 well completed in 2015”, ExxonMobil President Steve Greenlee, said.

ExxonMobil Makes World-Class Oil Discovery

The well was drilled by the supermajor’s affiliate Esso Exploration and Production Guyana Ltd. using Stena Drilling’s Stena Carron drillship, approximately two miles from the Liza-1 well, successfully drilled in March 2015.

Data from the Liza-2 well is currently being assessed, but ExxonMobil has confirmed it has encountered more than 190 feet of oil-bearing sandstone reservoirs in Upper Cretaceous formations after drilling the well to 17,963 feet in 5,551 feet of water.

ExxonMobil Makes World-Class Oil Discovery
Stena Drilling Stena Carron Ultra Deepwater Drillship

“This exploration success demonstrates the strength of our long-term investment approach, as well as our technology leadership in ultra, deepwater environments”, Greenlee added.

“We, along with our co-venturers, look forward to continuing a strong partnership with the government of Guyana to further evaluate the commercial potential for this exciting prospect,” he stated further.

Promising Find Offshore Guyana

The Staebroek block covers an area of 288,472 square feet and is located approximately 120 miles offshore Guyana.

Esso Exploration and Production Guyana Limited operates the block, with a 45% interest, while Hess Guyana Exploration Ltd. holds another 30% and CNOOC Nexen Petroleum Guyana Limited the remaining 25%.

The Liza-1 well was drilled in March 2015 and encountered more than 295 feet of high-quality oil-bearing sandstone reservoirs.

The well probably holds the equivalent to over 700 million barrels of oil and could start producing by the end of this decade.

Guyana currently produces no oil.