Exploration/discoveries

Exxon Declares a Dud at Second Guyana Well

The Hassa-1 exploration well in the prolific Stabroek Block was the giant’s second setback to its drilling campaign in recent months.

Map of Guyana offshore oil fields
Petroleum province, offshore Guyana.
Hess

Exxon Mobil said on 15 January that its exploration well in the prolific Stabroek Block off Guyana’s coast did not find oil in its target area.

Exxon, which operates the Stabroek Block in a consortium with Hess and China’s CNOOC, has made 18 discoveries in the area in 5 years, totaling more than 8 billion BOE, for a combined potential for producing up to 750,000 B/D of crude.

The Hassa-1 exploration well was the giant’s second setback to its drilling campaign in recent months.

The disappointment came after Exxon said in November that its crude discovery at the Tanager-1 well was noncommercial as a standalone development. The well was the first Exxon drilled in the Guyana-Suriname Kaieteur Block, adjacent to Stabroek, and was the deepest drilled in that block to date.

In December 2020, Hess announced an oil discovery offshore Guyana at the Redtail-1 well, which is expected to add to the previously announced gross discovered recoverable resource estimate for the block.

At the Liza-1 well in the Stabroek Block, production began in December 2019. The well is currently producing some 120,000 B/D.

The company also recently made the final investment decision on a third find, the Payara field, which is expected to pump up to 220,000 B/D beginning in 2024.