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Stabroek Block offers unique opportunities for highest return on investment – Exxon’s VP
…says every year company drills at twice the speed
Kaieteur News- ExxonMobil’s Senior Vice President, Neil Chapman, has highlighted the Stabroek Block as a prime location for high-return on investments. Chapman said that despite being in the early stages of development, it is already performing well and offers significant untapped opportunities to recover the 11 billion barrels of oil equivalent.
The Senior Vice President speaking recently about the company’s progress, stated, “I like to remind you, and I always like to remind everybody, we’re still very early in the development of the Stabroek Block.” He outlined ExxonMobil’s progress in Guyana, noting that the company has been exceeding its outlined plans.
ExxonMobil’s Senior Vice President, Neil Chapman
Currently, three floating production, storage, and offloading (FPSO) vessels are in operation in the Stabroek Block, with a daily production rate of about 660,000 barrels of oil. Chapman noted, “We’re adding two new FPSO developments to recover more of the 11 billion barrels of announced discovered resource.”
By the end of the decade, Exxon aims to have eight FPSOs in production, achieving a combined capacity of 1.7 million barrels of oil equivalent per day (boe/d) and an estimated production of 1.3 million boe/d.
Chapman underscored, “Three boats [FPSOs] are online, five to come. These eight boats are going to be deployed across hundreds of square miles. What that means is, when you’ve got eight foundational boats, you’ve got lots of opportunities for tie backs, you’ve got lots of opportunities for infield drilling. Those are the highest return investments you’ll ever make in the upstream because you’ve got most of the capital already deployed.”
Further, the senior executive highlighted the importance of drilling efficiency, noting that the company is now drilling at twice the speed it achieved in 2019. “Drilling is really critical…you can see we’re industry leading, and every year we’re drilling at a faster pace,” Chapman said.
He highlighted the company’s success of delivering the first three FPSOs on schedule and within budget, attributing this achievement to Exxon’s aggressive yet achievable planning. He highlighted that a third of the cost for these projects lies in the FPSO, a third in subsea infrastructure, and a third in drilling. “The budgets and these schedules are the most aggressive in the industry,” he said.
Moreover, Chapman also detailed the application of advanced technology, including 4D seismic imaging, to enhance recovery rates and well placement accuracy. This technology allows ExxonMobil to visualize real-time movements of oil, gas, and liquids within reservoirs, improving the placement of wells and boosting recovery efficiency.
Exxon’s planned 8 developments for the Stabroek Block by 2030
“We estimate this technology is going to add a billion dollars net to our first six boats,” Chapman said. He added that ongoing investments in high-performance computing will further enhance these capabilities.
“Remember, we’re doing something unique here. We’re exploring, appraising, and developing all in parallel in this basin… the scale of Guyana allows economic deployment of more intense seismic programs,” Chapman noted.
Speaking about Exxon’s planned seventh development in the Stabroek Block – the Hammerhead – Chapman noted that this development will produce heavier crude oil. Meanwhile, he noted that the eighth development, Longtail, will focus on lighter crude. Both projects are pending government endorsements.
Looking to the future, Chapman emphasized that Exxon is still in the early stages of exploring and developing the Stabroek Block, with significant untapped potential remaining. “We’re not even close to doing that. There’s lots of running room. We’re continuing to explore,” he said.
(Stabroek Block offers unique opportunities for highest return on investment – Exxon’s VP)
(Stabroek Block offers)
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