ExxonMobil comes up empty on third well

Sep 09, 2016 News

A third well drilled by US-owned ExxonMobil has failed to find oil in commercial

The Stena Carron drill ship which was used for the third well.

quantities, Government announced yesterday.
But the setback is not daunting the company, which is steaming ahead to develop another well which struck oil last year.
Announcing the results of the third well yesterday, the Ministry of Natural Resources disclosed that it was informed by ExxonMobil and the Guyana Geology and Mines Commission (GGMC) on August 29, 2016 that the ‘Skip Jack’ well proved not to have commercial quantities of hydrocarbons.
“We are continuing to have verification work done and awaiting a full report and more information will be provided then. This announcement reminded us of the undulating fortunes of mining in general and of oil exploration in particular.”
However, the exploration company will continue with plans to develop the Liza well, the first one drilled last year, with its declared capacity of approximately one billion barrels.
The ministry said that the company will also look for other possible targets for drilling.
“Likewise, the Government continues its preparations for the eventual production of oil and gas in the near future by building capacity at the legislative, technical and regulatory levels.”
Oil production in the ExxonMobil concessions offshore Guyana could see as much as 200,000 barrels of oil per day during full operations.
Last month, ExxonMobil met with the business community and media houses to update them on the activities. It is expected that production could start by 2020.
Company officials had disclosed that its second well confirmed the preliminary findings of its predecessor, the Liza 1 well, which saw sufficient deposits of oil to develop and extract commercially.
”Recent data from the Liza 2 appraisal well and 3D seismic survey indicates that the discovery contains some 0.8 billion to 1.4 billion barrels of oil deposits.
The company is looking at more than 100,000 barrels per day when production starts in four years time.
The Private Sector Commission had disclosed that the exploration company had assured the importance of local jobs and other opportunities for businesses. However, it is unlikely thousands of jobs will be created from the oil activities, the exploration company cautioned.

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