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Exxon targets 500,000 barrels daily in Stabroek Block
The Stena Carron drillship
US oil producer, ExxonMobil, and its partners, are targeting up to 500,000 barrels daily when production and expansion are in full swing after 2020.
On Wednesday, Natural Resources Minister Raphael Trotman announced that ExxonMobil had struck oil again, in its latest well at the Pacora-1 area.
Yesterday, ExxonMobil, giving details in a statement, said that it is its seventh oil discovery offshore Guyana, following drilling at the Pacora-1 exploration well.
“ExxonMobil encountered approximately 65 feet (20 metres) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 18,363 feet (5,597 metres) depth in 6,781 feet (2,067 metres) of water. Drilling commenced on Jan. 29, 2018.”
According to ExxonMobil, this latest discovery further increases confidence in developing this key area of the Stabroek Block.
According to Steve Greenlee, president of ExxonMobil Exploration Company: “Pacora will be developed in conjunction with the giant Payara field, and along with other phases, will help bring Guyana production to more than 500,000 barrels per day.”
ExxonMobil did not immediately give a timeline for that 500,000 barrels daily.
“The Pacora-1 well is located approximately four miles west of the Payara-1 well, and follows previous discoveries on the Stabroek Block at Liza, Payara, Liza Deep, Snoek, Turbot and Ranger.”
The oil company said that following completion of the Pacora-1 well, the Stena Carron drillship will move to the Liza field to drill the Liza-5 well and complete a well test, which will be used to assess concepts for the Payara development.
“ExxonMobil announced project sanctioning for the Liza phase one development in June 2017. Following Liza-5, the Stena Carron will conduct additional exploration and appraisal drilling on the block.”
The Stabroek Block is 6.6 million acres (26,800 square kilometres). Esso Exploration and Production Guyana Limited is the operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.
ExxonMobil, the largest publicly traded international energy company, announced in May 2015 that it struck what appeared to be a large deposit of oil. Several wells later, the estimates are that the Stabroek block has over three billion barrels of oil in the area with more exploration underway.
Production is slated to start in 2020, the first commercial oil production for Guyana.
However, the deal with ExxonMobil and its partners, regarding the royalty rate of two percent as well as other details, has come under fire, with comparisons with other nations suggesting that Guyana came out the worse.
The Coalition Government has announced a raft of measures and legislation in readiness for the 2020 start.
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