ExxonMobil Tacks On Two More Discoveries in Massive Guyana Block

The US supermajor has made more than 30 discoveries offshore the South American country since exploration efforts began in 2015.

Stena Carron - Lower angle 1
The Stena Carron 6th-generation drillship has drilled two more successful exploration wells offshore Guyana.
Source: Hess.

ExxonMobil announced today two new discoveries offshore Guyana in the Stabroek block which holds an estimated 11 billion BOE of recoverable resources. The successful discovery wells count as the US supermajor's eighth and ninth of the year and bring its total to more than 30 since drilling began in the 6.6-million-acre block in 2015.

The Sailfin-1 well was drilled in a water depth of 4,616 ft and encountered more than 300 ft of pay zone in a sandstone reservoir.

The Yarrow-1 well was drilled from a depth of 3,560 ft and intersected with 75 ft of oil-bearing sandstone. According to previous statements by minority partner Hess, the Yarrow-1 well targeted a stacked Upper Campanian formation found less than 20 miles from the Yellowtail discovery that is expected to result in 40–60 development wells in the coming years.

Both of the new discoveries were drilled from the Stena Carron, a 6th-generation drillship owned by Stena Drilling. Total depths of the wells were not shared.

ExxonMobil drilled the Banjo-1 exploration well earlier in the third quarter offshore Guyana which ended up being uncommercial. The Banjo-1 well was also targeting Upper Campanian formations and is found within 8 miles of a successful discovery made earlier in the year.

The Stabroek block is currently producing an average of 360,000 B/D of crude from two floating production, storage, and offloading units (FPSOs). According to ExxonMobil, the FPSOs—the Liza Destiny and Liza Unity—are exceeding their designed capacity by around 20,000 B/D.

A third FPSO—the Prosperity—is scheduled to achieve first oil by the end of next year at the Payara field. Maximum output from the FPSO is expected to be 220,000 B/D.

ExxonMobil plans to install at least six FPSOs with a crude-processing capacity surpassing 1 million B/D to be operating in the Stabroek block by 2027. The operator is considering up to 10 FPSOs in total to develop the block's massive reserves.

ExxonMobil operates Stabroek with a 45% interest. Partners Hess and China National Offshore Oil Corporation hold 30% and 25% interest, respectively.