Guyana’s oil find estimated at $2.7B barrels

Jul 29, 2017 News

-Says govt. will receive revenue from day one

ExxonMobil’s Operations Manager, Doug Mc Gehee, on Thursday updated a room full of entrepreneurs about the oil giant’s activities in Guyana. This was at the launch of the eighth edition of the Georgetown Chamber of Commerce and Industry’s (GCCI) Business Guyana Magazine.
Mc Gehee painted a bright picture about what Guyana can expect when oil production begins. So detailed was Mc Gehee’s presentation that GCCI’s Nicholas Boyer, said that he learnt a lot and was reminded of many details surrounding ExxonMobil’s activities in Guyana.
However, much of what was said focused on the drilling and exploration activities itself as opposed to the agreements that it has with the government on oil production. Mc Gehee spoke extensively about the drilling activities and went into some technicalities about the drilling activity.
He noted that the overall estimation of oil already discovered in Guyana is now between 2.25 billion and 2.75 billion oil equivalent barrels. This, according to Mc Gehee, represents oil bearing rocks found in Liza one, two, three and four wells, Liza deep, Payara and Snoek. He reminded that oil was not found in commercial quantities at the SkipJack well.
Mc Gehee even joked that when Skipjack was found empty, they decided that the luck was with Liza so they named the others Liza three, Liza four and Liza deep.
The Operations Manager said that ExxonMobil is committed to exploiting the full potential of the Stabroek Block and “so we will keep drilling.”
He said that about 120 barrels of oil will be produced a day for the first 20 years in Guyana.
During his speech, President of GCCI Deodat Indar charged Mc Gehee to shed light on a few issues. Indar was keen to note that the GCCI is pleased that a world class company such as ExxonMobil has invested heavily in Guyana.
He said, “We are committed to working with you. It is with a degree of excitement that I say, I am pleased to see the announcement that over 140 Guyanese companies now supply either goods or services to ExxonMobil offshore operations.
“Also that you have created a Local Content Center aimed at developing Guyanese businesses to become oil industry compliant suppliers.”
Indar said that it takes a supply boat approximately 10 hours travelling at 9.5 nautical miles per hour to reach the offshore operations compared to 24hours from Chaguaramas, Trinidad to reach Exxon Offshore Operations.
He said that this speaks to time and costs, obviously Guyana being cheaper in this case. He added, “So I am also pleased to see the contract for the onshore base being awarded right here in Guyana, which I understand, Muneshwers’ are hiring Guyanese like crazy.”
The Chamber President noted that ExxonMobil has license to explore 6.6 million acres of land offshore Guyana. “To put that in perspective means that the Island of Trinidad can fit 5.2 times in the blocks now controlled by ExxonMobil.
“The world class finds in the Liza field and Payara Field say clearly that the oil reservoirs are huge. In some corners of the oil industry this is termed, ‘basin masters’. So with this large resource at your control comes a huge responsibility to the Guyanese people.”
He then charged Mc Gehee to inform this gathering “how you see the role of Exxon in the development of Guyana.” But Mc Gehee did not say too much on this.
“Let us understand where you intend to direct resources to build internal capacity in the areas of labour, providing goods and services to you as a major operator. Over the past three years you have conducted exploration and drilling activities in Guyana.
“We would like to see more Guyanese involvement in the workforce for low end jobs such as cooks, chippers and painters, ablebodied riggers, ablebodied Unlimited riggers, Banksmen on the supply boats and Stena Carron if that’s possible at this time.”
In this regard, Mc Gehee said that already, 60 to 70 percent of the crew on the supply vessel is Guyanese. He said that more are to be employed by ExxonMobil. However, he did not speak to how a Guyanese business can bid to provide service to Stena Carron.
“At the end of the day it is Guyanese taxpayers who will be footing the bill as a deduction from its future earning; therefore it is only fair that we be given first priority as they say in Canada, for all things soap, rope and dope. “

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Guyana’s oil find estimated at $2.7B barrels

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