Exxon eyes 6th oil project approval in early 2024 - Hess Boss tells Energy Conference

Exxon eyes 6th oil project approval in early 2024 – Hess Boss tells Energy Conference

Sep 08, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – The sixth massive oil project earmarked for the Stabroek Block could receive regulatory approval in early 2024 says Hess Corporation’s Chief Executive Officer (CEO), John Hess.

The leader of the American oil exploration company made this disclosure during his virtual presentation at Barclays CEO Energy-Power Conference on Thursday. Though he did not divulge any other additional information about the sixth development named Whiptail, Hess did note in his presentation that it forms part of the world class cue of oil projects to come on stream in Guyana’s Stabroek Block.

ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) is the designated Operator of the Stabroek Block alongside its co-venturers, Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited.

In the Environmental Impact Assessment (EIA) for Whiptail, it notes that the planned drilling campaign could potentially begin in 2024 for the purposes of accelerated subsurface data collection and optimal use of drill ship time. The potential scope for 2024 drilling could include top-hole sections of up to eight wells, but likely no completions in the reservoir interval(s). In this case, the report prepared by EEPGL’s consultants states that wells would be temporarily plugged and re-entered for completion operations during the primary drilling campaign for the project. Drilling could extend as late as 2031 depending on the total number of wells drilled.

Hess Corporation’s CEO, John Hess

Based on the results of initial feasibility and conceptual design studies, EEPGL said in its report that preliminary Front-End Engineering and Design for the Project is currently underway to be followed by detailed engineering. In support of this activity, various baseline data collection studies have been undertaken at the project site.

EEPGL also said a preliminary schedule anticipates that FPSO and SURF fabrication and installation for a Floating Production Storage and Offloading (FPSO) vessel and Subsea, Umbilicals, Risers, and Flowlines will begin in early 2026 following the completion of engineering and will take approximately two years. Development well drilling may also occur during this period.

Notably, the sixth project is expected to utilize that oil will be produced from the Whiptail, Pinktail, and Tilapia fields of the Stabroek Block. These oil fields are approximately 1,500 to 2,200 meters deep. Exxon expects to drill approximately 33 to 72 development wells (including production and water/gas injection wells) to support the project. It also anticipates that the FPSO to be used will have an upper production limit of 263,000 barrels per day (bpd).

EEPGL had obtained approval from the Government of Guyana for five development projects in the Stabroek Block—the Liza Phase 1 Development Project, Liza Phase 2 Development Project, Payara Development Project, Yellowtail Development Project, and Uaru Development Project. Collectively, these five projects are worth over US$41B. According to the terms of the petroleum agreement signed between the oil companies and Guyana, all investments will be recovered using Guyana’s oil. Notably, the Liza Phase One and Liza Phase Two Projects are already in operation, producing some 400,000 barrels of oil per day.