Exxon Bets Another $10 Billion On Guyana’s Oil Boom
04.18.2022 - NEWS

April 18, 2022 [OILPRICE] – For the past 7 years, ExxonMobil has been consistently increasing its footprint in Guyana.

 

Exxon has already made over 20 discoveries, and it is predicting many more to come.

The supermajor estimates its Stabroek Block holds at least 10 billion barrels of recoverable oil resources.

The deeply impoverished South American microstate of Guyana, which was rocked by the COVID-19 pandemic, finds itself at the epicenter of the continent’s latest mega-oil boom. Since 2015, ExxonMobil, which has a 45% stake and is the operator, along with its partners Hess and CNOOC which own 30% and 25% respectively, has made a swathe of high-quality oil discoveries in Guyana’s offshore 6.6-million-acre Stabroek Block.

Exxon, which is the operator of the Stabroek Block, has made over 20 discoveries, 6 of those in 2021 alone, which the global energy supermajor estimates to hold at least 10 billion barrels of recoverable oil resources. The most recent crude oil discoveries, announced in January 2022, were at the Fangtooth-1 and Lau Lau-1 exploration wells.

Those finds will boost the Stabroek Block’s oil potential adding to the 10 billion barrels of recoverable oil resources already estimated by Exxon.

The integrated energy supermajor is investing heavily in the Stabroek Block, which will be a game-changer for the company. Exxon’s first operational field in the Stabroek Block Liza Phase-1 achieved a nameplate capacity of 120,000 barrels per day during December 2020. The next notable development for the Exxon-led consortium and a deeply impoverished Guyana is that the Liza Phase-2 development pumped first oil in February 2022.

That operation is expected to reach a nameplate capacity of 220,000 barrels daily before the end of 20220, lifting the Stabroek Block’s output to around 340,000 barrels per day. In September 2020 Exxon gave the green light for the Payara oilfield project.

This $9 billion development is the supermajor’s third project in the Stabroek Block, and it is anticipated that Payara will start production during 2024, with the asset expected to reach a capacity of 220,000 barrels per day before the end of that year.

Earlier this month, Exxon made the final investment decision on the Yellow Tail offshore development choosing to proceed and invest $10 billion in the project. This was announced on the back of Guyana’s national government, in Georgetown, approving the project and signing a petroleum production license for Yellow Tail with the Exxon-led consortium.

This will be the integrated energy supermajor’s largest project to be developed to date in offshore Guyana. It is anticipated that Yellow Tail will commence production in 2025 reaching a nameplate production capacity of 250,000 barrels per day before the end of that year. That will lift overall petroleum output from the Stabroek Block to at least 810,000 barrels per day.

Exxon envisages that the Stabroek Block will be pumping over 1 million barrels per day by 2026 when the Uaru project, which has yet to be approved, comes online.

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