Hess, Exxon hurry to appraise latest multi-million barrel discovery at Lau Lau well

Jan 28, 2022 News

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– excited to understand scale of future profits

Kaieteur News – Earlier this month, Kaieteur News had reported that partners on the Stabroek Block—ExxonMobil, Hess Corporation, and CNOOC Petroleum Limited— recorded two more major discoveries in the offshore concession. These were made at the Fangtooth and Lau Lau wells.

But given preliminary forecasts that the finds, hold approximately half a billion barrels of oil resources, the partners are now hurrying to conduct appraisal work so as to have a better understanding of the scale of profits they stand to make in the future.
Elaborating on this front during its recent fourth quarter earnings call for 2021 was Hess Corporation. Its Chief Executive Officer (CEO), John Hess said, “…With these discoveries, the gross discovered recoverable resource estimate for the block is now more than 10 billion barrels of oil equivalent – and we continue to see multibillion barrels of future exploration potential remaining.”
He added, “Positive results at Fangtooth, our first standalone deep exploration prospect, confirm the deeper exploration potential of the block. Both discoveries further underpin our queue of future low cost development opportunities.”
In the coming months, Chief Operating Officer for Hess, Greg Hill said the partners will complete the analysis of the exploration well results. He said too that appraisal activities will then be conducted to determine the optimal development approach and timing.
Like his boss, Hill said, “Lau Lau further underpins our queue of future low-cost development opportunities in the southeastern portion of the Stabroek Block. This discovery will also require appraisal to determine the ultimate development approach and timing.”
Given that the partners continue to see multi billion barrels of exploration potential on the Stabroek Block, Hill said no time will be wasted to launch an aggressive drilling programme in 2022.
Hill said the partners plan to drill approximately 12 exploration and appraisal wells that will target a variety of prospects and play types. He said these will include lower risk wells near existing discoveries, higher risk step outs and several penetrations that will test deeper Lower Campanian and Santonian intervals.
The Chief Operating Officer said exploration wells planned for the first quarter of 2022 include: Barreleye-1, located approximately 20 miles southeast of Liza. The primary target is lower Campanian with shallow and deeper secondary targets. The well was spud on December 30, 2021.
Next in line he said is Tarpon-1, located approximately 63 miles northwest of Liza, which will target lower Campanian clastics, plus a deeper Jurassic carbonate. The well will be drilled following completion of Fangtooth operations.
He noted that Patwa-1, also in the queue, is near the Turbot area discoveries in the block. He said this well is approximately 3 miles northwest of the Cataback-1 discovery, with targets in upper Cretaceous clastic reservoirs. The well is anticipated to spud in March.
Kaieteur News understands that Lukanani-1 which is in the southeastern part of the Stabroek Block, located approximately 2 miles west of Pluma is also on the list. It is anticipated to spud in March. The primary target is Maastrichtian age clastic reservoirs, with secondary objectives in lower Campanian reservoirs.
With respect to the appraisal programme in 2022, Hess said this will be focused on delineating future developments. Hill said first quarter appraisal activities will include the Tilapia-2 appraisal well, located approximately 24 miles southeast of Liza-1. The well will appraise the February 2019 Tilapia-1 discovery in the Turbot area and is anticipated to spud in March.
In addition, Hill said, “We plan to conduct drill stem tests at Tilapia-1 and Pinktail-1.”
Turning to development activities, he said this year will include drilling for both the Liza Phase 2 and Payara projects.
Hill said initial development drilling activities will also begin for the Yellowtail project following approval of the Field Development Plan by the government. He recalled that the Field Development Plan and Environmental Impact Assessment for Yellowtail have been submitted for government and regulatory review while adding, “The government is supportive of the project and startup remains on track for 2025. We look forward to continuing to work with the Government of Guyana and our partners to realize the extraordinary potential of this world class project.”
He was keen to note as well that a planned turnaround will be conducted in March on the Liza Destiny FPSO while adding that work activities will include production optimization work, designed to increase the vessel’s production capacity.
At Liza Phase 2, the Chief Operating Officer said the Liza Unity FPSO vessel is undergoing final hookup and commissioning after arriving in Guyanese waters in October 2021. Kaieteur News understands that the Liza Unity is on track to start production in the first quarter of 2022 with a capacity of approximately 220,000 gross barrels of oil per day.
With regard to Payara, Hill said the overall project is 66 percent complete. He noted that the hull for the Prosperity FPSO vessel is complete, and topside construction activities are ongoing in Singapore for planned production start-up in 2024.

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