ExxonMobil ramping up offshore development and production

International oil company, ExxonMobil has announced two discoveries at the Sailfin-1 and Yarrow-1 wells in the Stabroek block, offshore Guyana.

The Sailfin-1 well encountered approximately 312 feet (95 metres) of hydrocarbon-bearing sandstone and was drilled in 4,616 feet (1,407 metres) of water. The Yarrow-1 well encountered approximately 75 feet (23 metres) of hydrocarbon-bearing sandstone and was drilled in 3,560 feet (1,085 metres) of water.

Both wells were drilled by the Stena Carron drillship. Oil industry website, OilNOW is reporting that these two latest discoveries have added to ExxonMobil’s extensive portfolio of development opportunities.

ExxonMobil has made more than 30 discoveries on the block since 2015 and it has ramped up offshore development and production at a pace that far exceeds the industry average.

Liam Mallon, president of ExxonMobil Upstream Company, is hailing this latest success.

ExxonMobil’s exploration success

According to Mallon, ExxonMobil’s “unrivaled exploration success and accelerated pace of development in Guyana are a testament to our people, decades of experience, technology capabilities and steadfast focus on optimising all aspects of operations”.

He added: “We are committed to responsibly and safely developing this world-class resource to help meet global demand for secure, reliable and lower-emission energy.”

Mallon made the point that ExxonMobil’s investments through the pandemic have allowed it to increase supply at this critical time, while creating value for the people of Guyana, its partners and shareholders.

ExxonMobil’s first two sanctioned offshore Guyana projects – Liza Phase 1 and Liza Phase 2 – achieved an average of nearly 360,000 barrels of oil per day in the third quarter.

A third project, Payara, is expected to start up by the end of 2023 while a fourth project, Yellowtail, is expected to start up in 2025.

ExxonMobil is currently pursuing environmental authorisation for a fifth project, Uaru.

By the end of the decade, ExxonMobil expects Guyana’s oil production capacity to be more than one million barrels a day.

Guyana’s Stabroek block is 6.6 million acres (26,800 square kilometres).

ExxonMobil affiliate, Esso Exploration and Production Guyana Limited, is the operator and holds 45 per cent interest in the block. Hess Guyana Exploration Ltd holds 30 per cent interest and CNOOC Petroleum Guyana Limited holds 25 per cent interest.