Exxon partner discloses another discovery that contradicts Govt.’s claim that reserves only grew by 600m barrels

Aug 30, 2024 News

Kaieteur News – State-owned China National Offshore Oil Corporation (CNOOC) a 25% partner in the Stabroek Block has put the reserves increase over the 600 million barrels growth that was recently announced by the Government of Guyana (GoG).

In April 2022, it was announced that Guyana’s Stabroek Block reserves stood at 11 billion barrels of oil; since then eight new discoveries were made joining the more than 30 already made on the Stabroek block since 2015. It is important to note that earlier this year CNOOC released its 2023 annual report which stated that the Lancetfish discovery has averaged some 100 million tons, which is equivalent to 746 million barrels of oil.

Back in March, ExxonMobil Guyana Limited (EMGL) announced a discovery at Bluefin in the Stabroek block offshore Guyana, the company’s first discovery of 2024. While EMGL did not disclose the estimated recoverable resources from the discovery it was stated that the Bluefin well encountered approximately 197 feet (60 metres) of hydrocarbon-bearing sandstone and was drilled in 4,244 feet (1,294 metres) of water. The Bluefin well is located approximately 8.5 kilometres southeast of the Sailfin-1 well, in the southeastern portion Stabroek block.

This week CNOOC posted its first-half results on its global operations, boasting a net profit attributable to equity shareholders increase by 25% to RMB79.7 billion (over US$11 billion).

CNOOC said that in the first half of the year, it focused on increasing oil and gas reserves and production. Within the six months period, the company made seven new discoveries and successfully appraised 18 oil and gas bearing structures. One of the discoveries the company pointed out is the Bluefin discovery on the Stabroek Block, which CNOOC said further expand the reserves in the southeastern portion of the block.

Vice President, Dr. Bharrat Jagdeo

Notably, according to the company’s filing the Hong Kong Stock Exchange, “Overseas, a new discovery with in-place oil and gas volume over 100 million tons, Bluefin, was made at the Stabroek block in Guyana.”

This second revelation by CNOOC shows that Guyana’s reserves have increased significantly since the 2022 update. However, Vice President Bharrat Jagdeo has been contending that since the 2022 update there has only been a “minimal” increase in the reserves.

At one of his recent press conferences, Jagdeo said, “On the reserve, I told you that there is a submission that Exxon makes to us, this submission showed a minimal increase from the last quarter to this quarter of proven reserves, minimal increase… We have gone out to contract someone to do an audit of these reserves. So we saw what Exxon submitted, and we are going to do an audit of the reserves so that we can get the full picture.” Notably, a French company has been awarded a contract to assist the government with understanding the country’s proven reserves.

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China National Offshore Oil Corporation (CNOOC), Dr. Bharrat Jagdeo, million, Stabroek Block, Vice President

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