By: Staff Writer
June 11, 2021
The minister for natural resources in Guyana said that the new $9bn oil find in the Lontail-3 sector has prompted new interest to work with operators other than Exxon-Mobil to “expedite” their own drill programmes.
Vickram Bharrat, who has responsibility for the petroleum sector, said in a statement after Exxon Mobil found oil in the Lontail-3 sector in Guyana that: “On behalf of the Government of Guyana, it gives me great pleasure and honour to announce Guyana’s 20th Offshore Oil Discovery at Longtail-3 Offshore Guyana within the Stabroek Block offshore.
“The Longtail-3 discovery will add to the previously announced gross discovered recoverable resource estimate for the block, which is currently estimated to be over 9 billion oil-equivalent barrels. I was advised that drilling at Longtail-3 encountered at 230 feet (70 meters), high-quality hydrocarbon-bearing reservoirs below the original Longtail-1 discovery intervals. The well is located approximately two miles (3.5 kilometres) south of the Longtail-1 well and it was drilled in more than 6,100 feet (1860 meters) of water by the Stena DrillMAX.
“The Government of Guyana anticipates that this new development will further increase the potentials for more floating production storage and offloading vessels (FPSO). Additionally, this will increase the estimated recoverable resource given by the operator, Esso Exploration and Production Guyana Limited (EEPGL). As such, the Ministry and the Petroleum Sector regulatory agencies will continue to work with other operators to expedite their drill programme as we seek to expand the sector.
Mr Bharrat added: “Again, the Government of Guyana welcomes this new discovery at Longtail-3 Offshore Guyana and reinforces its commitment to the sustainable exploration and development of Guyana’s Oil and Gas Resources. This will be done in keeping with the highest level of compliance and transparency to ensure that the benefits from this sector enhance the lives of all Guyanese.”
ExxonMobil earlier this week said it made a discovery at Longtail-3 in the Stabroek Block offshore Guyana.
In a release on the company’s website they said, “Drilling at Longtail-3 encountered 230 feet (70 meters) of net pay, including newly identified, high quality hydrocarbon bearing reservoirs below the original Longtail-1 discovery intervals. The well is located approximately two miles (3.5 kilometers) south of the Longtail-1 well. It was drilled in more than 6,100 feet (1860 meters) of water by the Stena DrillMAX.”
Two drillships added in first quarter 2021; six drillships now operating offshore Guyana. Additional drilling activity to support Stabroek development.
More than 2,600 Guyanese citizens are supporting overall activities.
The release continued, “Longtail-3, combined with our recent discovery at Uaru-2, has the potential to increase our resource estimate within the Stabroek block, demonstrating further growth of this world-class resource and our high-potential development opportunities offshore Guyana,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil. “We will continue to leverage our core competitive advantages in our ongoing exploration campaign, delivering substantial value to the Guyanese people, our partners and shareholders.”
The Longtail-1 discovery in the Stabroek Block was drilled in 2018, encountering approximately 256 feet (78 meters) of high-quality, oil-bearing sandstone reservoir.
ExxonMobil has deployed two additional drillships in the first quarter of 2021; the Stena DrillMAX and the Noble Sam Croft to enable further exploration and evaluation, while continuing development drilling activities offshore Guyana. As the company advances its 15-well campaign in the Stabroek block, DrillMAX will move to Whiptail-1, while the Noble Sam Croft supports development drilling for Liza Phase 2.
In other drilling activity in the Stabroek Block, the Mako-2 evaluation well confirmed the quality, thickness and areal extent of the reservoir. When integrated with the previously announced discovery at Uaru-2, the data supports a potential fifth floating production storage and offloading vessel in the area east of the Liza complex. The Koebi-1 exploration well in the Stabroek block has shown evidence of non-commercial hydrocarbons.
By the first quarter of this year more than 2,600 Guyanese and 600 local suppliers were supporting ExxonMobil’s activities in country. Guyanese staff have completed more than 40,000 hours of training in Guyana, Trinidad and Tobago, and the United States.
The Stabroek Block is 6.6m 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.