ExxonMobil Ups Guyana World Class Reserves

Published at 02:48PM - 27/10/16

ExxonMobil has updated its claims of a world class discovery offshore Guyana, in the Stabroek block.

The announcement follows drilling completion at the Liza-3 well, after the two previous wells of the Liza giant oil discovery had already confirmed a high potential for field development.

“Based on the positive results of the Liza-3 well, we now expect Liza to be at the upper end of the previously announced estimated recoverable resources range of 800 million to 1.4 billion barrels of oil equivalent (boe),” Hess Corporation, ExxonMobil’s partner in the project, said in its latest financial report.

ExxonMobil Ups Guyana World Class Reserves

The Liza-3 well was drilled in September by ExxonMobil and Hess and followed drilling operations at the Skipjack well, which turned out to be dry.

In the end of June, ExxonMobil had confirmed that the drilling results from the Liza-2 well, the second exploration well in the Stabroek block offshore Guyana.

ExxonMobil Ups Guyana World Class Reserves
All Liza wells were drilled by the Stena Carron

At the time, the company confirmed a world-class discovery with a recoverable resource of between 800 million and 1.4 billion barrels of oil equivalent (boe).

The Liza-1 well was drilled in March 2015.

Liza Wells Could Prove Determinant for Guyana

The Liza wells are located in the Stabroek block, approximately 120 miles offshore Guyana, with an area of approximately 26,800 square kilometres (10,347 square miles).

Esso Exploration and Production Guyana Limited is the operator of the block with a 45% participation interest, while Hess Guyana Exploration Limited holds a 30% stake and CNOOC Nexen Petroleum Guyana Limited holds the remaining 25%.

Stabroek is part of the Essequibo region, which covers two-thirds of Guyana.

Currently, the country produces no oil or gas and imports all its oil products from Trinidad and Tobago following a dispute over the Essequibo region which led Venezuela to suspend all shipments in 2015.

In a report on the Liza development published by ExxonMobil, Guyana’s Minister for Governance and Spokesman for Natural Resources Raphael Trotman was quoted as saying that Liza is “more than simply a discovery of oil”.

“It has imbued a sense of responsibility, and a new spirit of hope and pride in our nation”, he said at the time.