In September 2019, ExxonMobil Corporation (NYSE: XOM) announced that the company has discovered oil in the Turbot area on the Stabroek Block at the Tripletail-1, located in offshore Guyana. The discovery contributes to the previously estimated recoverable resource of more than 6 billion oil-equivalent barrels on the Stabroek Block. This discovery is expected to further inform the development of the Turbot area.
An approximately 108 feet (33 meters) of a high-quality oil-bearing sandstone reservoir was found at Tripletail-1, which is drilled in 6,572 feet (2,003 meters) of water. Tripletail-1 is located approximately 3 miles (5 kilometers) northeast of the Longtail discovery. Longtail discovery was ExxonMobil’s eighth oil discovery offshore Guyana at the Longtail-1 well in June 2018, which created the potential for additional resource development in the southeast area of the Stabroek Block. Noble Tom Madden drillship, which is currently completing operations at Tripletail, will drill next at the Uaru-1 well, which located approximately 6 miles east of the Liza field. ExxonMobil, together with its partners, is continuously deploying industry-leading innovations and capabilities to identify projects that can be developed effectively and in a cost-efficient way.
This development is expected to drive the growth of the global crude oil market, which is supported by the rising demand for fuel oil. The global demand for fuel oil stood at a volume of around 100149.7 Kbpd in 2019 and is further projected to grow at a CAGR of 2% between 2020 and 2025 to reach 112784.9 Kbpd by 2025.
With the advancement in technology, the exploration and development activities are moving forward elsewhere on the Stabroek Block offshore Guyana. While the Stena Carron drillship is currently drilling the Ranger-2 well, the Noble Bob Douglas drillship is involved in the development of drilling operations for the Liza Phase 1 project. After this, Stena Carron drillship will be utilised to conduct a well test at Yellowtail-1. Moreover, ExxonMobil will be deploying a fourth drillship, the Noble Don Taylor, which is expected to begin Guyana operations in October, aiming to further optimise company’s drilling plans, which will be based on well results and ongoing study of the basin.
As scheduled, the Liza Phase 1 project development will start by early 2020, producing up to 120,000 barrels of oil per day. The company will be utilising the Liza Destiny floating production storage and offloading (FPSO), which arrived in Guyana on August 29, 2019, in order to reach this production volume.
In May 2019, ExxonMobil received government and regulatory approvals for Liza Phase 2 development project, after which the company approved funding for the same. The project is expected to start by mid-2022, and the company has planned to use the Liza Unity FPSO for this project, aiming to produce up to 220,000 barrels of oil per day. A third development, Payara startup, though subject to regulatory approvals, is expected to start its operation by 2023, further aiding the company to reach an estimated production capacity of around 220,000 barrels of oil per day.
The Stabroek Block is built in an area of around 6.6 million acres (26,800 square kilometers). It has ExxonMobil affiliate Esso Exploration and Production Guyana Limited as its operator, holding 45% interest in the Stabroek Block. Further, Hess Guyana Exploration Ltd. accounts for 30% interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25% interest.
ExxonMobil is one of the largest publicly traded international energy companies, which uses technology and innovation to help meet the rising global demand for energy and natural resources. ExxonMobil has an industry-leading inventory of resources. It is one of the largest refiners of petroleum products, and its chemical company is one of the largest in the world.
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