Stabroek partners make two offshore Guyana discoveries

Source: press releases, 5 January 2022

photo: Stena Drilling Ltd
photo: Stena Drilling Ltd

ExxonMobil and Hess Corporation have announced two significant discoveries at the Fangtooth-1 and Lau Lau-1 wells on the Stabroek Block offshore Guyana. These discoveries will add to the block’s previously announced gross discovered recoverable resource estimate of approximately 10 billion barrels of oil equivalent.

The Fangtooth-1 well encountered approximately 50 metres of high-quality oil-bearing sandstone reservoirs. The well was drilled in 1,838 metres of water by the Stena DrillMAX and is located approximately 18 kilometres northwest of the Liza Field.

The Lau Lau-1 well encountered approximately 96 metres of high-quality hydrocarbon bearing sandstone reservoirs. The well was drilled in 1,461 metres of water by the Noble Don Taylor and is located approximately 68 kilometres southeast of the Liza Field.

“Initial results from the Fangtooth and Lau Lau wells are a positive sign for Guyana and continue to demonstrate the potential for the country’s growing oil and gas sector, ExxonMobil and our co-venturers in the Stabroek block,” says Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil.

“The Fangtooth discovery is a successful result of our strategy to test deeper prospectivity, and the Lau Lau discovery adds to the large inventory of development opportunities in the southeast part of the Stabroek block. Both discoveries increase our understanding of the resource, our continued confidence in the block’s exploration potential, and our view that the many discoveries to date could result in up to 10 development projects,” Cousins adds.

“We are excited to announce two more significant discoveries on the Stabroek Block,” CEO John Hess says. “Positive results at Fangtooth, our first standalone deep exploration prospect, confirm the deeper exploration potential of the Stabroek Block. Both discoveries further underpin our queue of future low-cost development opportunities. We continue to see the potential for at least six FPSOs on the Stabroek Block in 2027 with a production capacity of more than 1 million gross barrels of oil per day, and up to 10 FPSOs to develop the discovered resources on the block.”

Separately, the Liza Unity floating production storage and offloading (FPSO) vessel is undergoing hook-up and commissioning after arriving in Guyanese waters in October 2021. The Unity is on track to start production in the first quarter of 2022 with a production capacity of approximately 220,000 gross barrels of oil per day.

The hull for the Prosperity FPSO vessel, the third development on the Stabroek Block at the Payara Field, is complete and topside construction activities are ongoing in Singapore for planned production start-up in 2024. The Field Development Plan and Environmental Impact Assessment for the fourth potential project, Yellowtail, have been submitted for government and regulatory review.

The Stabroek Block is 6.6 million acres. ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Limited holds 25% interest.