ExxonMobil raises Stabroek recoverable resource estimate to more than 4 billion BOE
ExxonMobil has increased its estimate of the discovered recoverable resources for the Stabroek Block offshore Guyana to more than 4 billion BOE and has advanced its evaluation to support a third phase of development and consideration of two additional phases.
The increase follows completion of testing at the Liza-5 appraisal well, a discovery at Ranger, incorporation of the eighth discovery, Longtail, into the Turbot area evaluation and completion of the Pacora discovery evaluation. The previous recoverable resource estimate was 3.2 billion BOE.
“Outstanding resource quality across these opportunities combined with industry-leading project execution capabilities will provide great value to resource owners, partners and our shareholders,” said Neil Chapman, Senior Vice President, ExxonMobil.
“Continued success in Guyana and progress in other upstream growth projects in the US Permian Basin, Mozambique, Papua New Guinea and Brazil are giving us additional confidence in achieving our long-term earnings growth plans that we outlined in March.”
“The Stabroek Block is a massive world-class resource that keeps getting bigger and better,” said John Hess, CEO of Hess Corp, a partner in the Stabroek Block. “Since the end of 2016, the estimate for recoverable resources on the block has quadrupled, and we continue to see multi-billion barrels of additional exploration potential on the block. We believe the investment opportunity in Guyana has the potential to be transformative for our company and create significant value for our shareholders for many years to come.”
Guyana’s first development, Liza Phase 1, will use a floating production, storage and offloading (FPSO) vessel to produce 120,000 bbl/day of oil, starting by early 2020. Liza Phase 2, which is targeted for sanctioning by the end of this year, will use an FPSO vessel designed to produce up to 220,000 bbl/day of oil and is expected to be producing by mid-2022.
The Liza-5 well successfully tested the northern portion of the Liza field and, along with the giant Payara field, will support a third phase of development in Guyana. The Payara development will target sanctioning in 2019 and will use an FPSO vessel designed to produce approximately 180,000 bbl/day of oil, as early as 2023.
The Longtail well established the Turbot-Longtail area as a potential development hub for recovery of more than 500 million BOE. Additional prospects to be drilled in this area could increase this estimate.
The collective discoveries on the Stabroek Block to date have established the potential for up to five FPSOs producing more than 750,000 bbl/day by 2025. There is potential for additional production from significant undrilled targets and plans for rapid exploration and appraisal drilling, including at the Ranger discovery.
The Stabroek Block is 6.6 million acres (26,800 sq km). ExxonMobil affiliate Esso Exploration and Production Guyana is operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration holds 30% interest, and CNOOC Nexen Petroleum Guyana holds 25% interest.