ExxonMobil Announces Discovery at Uaru-2 Offshore Guyana
April 27 2021 - 8:26AM
Business Wire
- Guyana potential increases to as many as 10 floating production
storage and offloading vessels (FPSO)
- Estimated recoverable resource of approximately 9 billion
oil-equivalent barrels to increase
- Six drillships now operating offshore Guyana
ExxonMobil said today it made an oil discovery at the Uaru-2
well in the Stabroek Block offshore Guyana. Uaru-2 will add to the
previously announced gross discovered recoverable resource estimate
for the block, which is currently estimated to be approximately 9
billion oil-equivalent barrels. Drilling at Uaru-2 encountered
approximately 120 feet (36.7 meters) of high quality oil bearing
reservoirs including newly identified intervals below the original
Uaru-1 discovery. The well was drilled in 5,659 feet (1,725 meters)
of water and is located approximately 6.8 miles (11 kilometers)
south of the Uaru-1 well.
“The Uaru-2 discovery enhances our work to optimally sequence
development opportunities in the Stabroek Block,” said Mike
Cousins, senior vice president of exploration and new ventures at
ExxonMobil. “Progressing our industry-leading investments and
well-executed exploration plans are vital in order to continue to
develop Guyana’s offshore resources that unlock additional value
for the people of Guyana and all stakeholders.”
In January 2020, ExxonMobil announced that Uaru-1 was the 16th
discovery in the Stabroek Block. The well encountered approximately
94 feet (29 meters) of high-quality oil-bearing sandstone reservoir
and was drilled in 6,342 feet (1,933 meters) of water.
In March 2021, ExxonMobil secured a sixth drillship, the Noble
Sam Croft, for exploration and evaluation drilling activities
offshore Guyana. A fourth project, Yellowtail, has been identified
within the block with anticipated start up in late 2025 pending
government approvals and project sanctioning. This project will
develop the Yellowtail and Redtail fields, which are located about
19 miles (30 kilometers) southeast of the Liza developments.
ExxonMobil anticipates at least six projects online by 2027 and
sees potential for up to 10 FPSOs to develop its current
recoverable resource balance.
The start-up of Liza Phase 2 remains on target for 2022, as the
Liza Unity FPSO prepares for sail away from Singapore to Guyana
later this year. The Unity FPSO has a production capacity of
220,000 barrels of oil per day at peak rates. The hull for the
Prosperity FPSO vessel, the third project at the Payara Field, is
complete, and topsides construction activities have commenced in
Singapore with a startup target of 2024.
These new projects continue to drive investment in the Guyanese
economy. More than 2,300 Guyanese are now supporting project
activities on and offshore, which reflects a more than 20 percent
increase since the end of 2019. ExxonMobil and its key contractors
have spent approximately US$388 million with more than 800 local
companies since 2015.
The Stabroek Block is 6.6 million acres (26,800 square
kilometers). ExxonMobil affiliate Esso Exploration and Production
Guyana Limited is operator and holds 45 percent interest in the
Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent
interest and CNOOC Petroleum Guyana Limited, a wholly-owned
subsidiary of CNOOC Limited, holds 25 percent interest.
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traded international energy companies, uses technology and
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Cautionary Statement Statements of future events or
conditions in this release are forward-looking statements. Actual
future results, including project plans, schedules, capacities,
production rates, timing, and resource recoveries could differ
materially due to: changes in market conditions affecting the oil
and gas industry or long-term oil and gas price levels; political
or regulatory developments including obtaining necessary regulatory
permits; restrictions in trade, travel or broader government
responses to first or subsequent waves of COVID-19; reservoir
performance; the outcome of future exploration and development
efforts; technical or operating factors; the outcome of commercial
negotiations; unexpected technological breakthroughs or challenges;
and other factors cited under the caption “Factors Affecting Future
Results” on the Investors page of our website at exxonmobil.com and
under Item 1A. Risk Factors in our annual report on Form 10-K.
References to “recoverable resource” include quantities of oil and
gas that are not yet classified as proved reserves under SEC rules
but that are expected to be ultimately recoverable.
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