‘Guyana’s Stabroek Block success is like a Michelin Star Restaurant’

‘Guyana’s Stabroek Block success is like a Michelin Star Restaurant’ – Exxon official

Dec 25, 2024 News

Kaieteur News – ExxonMobil’s Guyana Development Manager Drew Bishop, has likened the development and success of Guyana’s Stabroek Block to the experience of a Michelin star restaurant.

ExxonMobil’s Drew Bishop, Guyana Development Manager

Speaking during the Guyana Investor Spotlight event aired on December 12, Bishop detailed the strategies behind ExxonMobil’s rapid progress in Guyana’s oil sector. He outlined the execution of Exxon’s strategy that has led them to achieve remarkable success within five years of producing oil in Guyana.

“Guyana success is more like a Michelin star restaurant,” Bishop said, explaining that it’s not about a singular “secret sauce,” but about how diverse components come together to create a world-class outcome. “Diverse ingredients, creative recipes, and flawless execution in the kitchen and front of house” are vital, he added.

Oil was discovered in the Stabroek Block offshore Guyana in 2015, by December 2019 oil production commenced. Exxon Guyana is the operator and holds 45 percent interest – Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.

The Stabroek Block which covers an area of 6.6 million acres is estimated to hold 11.6 billion barrels of oil. To date, Exxon has obtained approval from the Government of Guyana for six development projects in the Stabroek Block – Liza Phase One, Liza Phase Two, Payara, Yellowtail, Uaru and Whiptail.

The first three projects are already producing oil at a daily estimated rate of 660,000 barrels per day (bpd). With the addition of Hammerhead and Longtail, Exxon said this will expand gross production in Guyana to approximately 1.3 million barrels per day, with total production capacity expected to reach 1.7 million barrels per day on an investment basis.

Highlighting the accelerated pace of development in Guyana, Bishop said, “Guyana has been one of the fastest developments from discovery to production in history.”

He pointed out that the country is on track to reach one million barrels per day within just over a decade of first discovery, adding, “For comparison, achieving this milestone in Brazil or Angola took 50 plus years.”

Further, elaborating on the unique challenges posed by the reservoirs in the Stabroek Block, Bishop explained, “Hammerhead, our seventh project, has amazing rocks in shallower water… but it also comes with some unique challenges from this heavy crude which looks more like molasses than water.”

On the other hand, he noted the contrasting characteristics of the eight project, Longtail development. “Longtail can’t decide if it wants to be gas or liquid,” he said, referring to its blend of gas and light, high-quality liquid oil.

Bishop identified advanced technology as ExxonMobil’s edge in maximizing the block’s potential. “4D seismic post startup is the most powerful tool to extract further incremental value,” he said, highlighting its role in production optimization and identifying new drilling opportunities.

ExxonMobil is not resting on its laurels, Bishop explained, with plans to explore new areas and maximize current developments. He noted that approximately one-third of the Stabroek Block still lacks 3D seismic coverage. “The thing to remember is we have unexplored acreage, still about a third of the block still does not even have 3D seismic across it,” he emphasized.

Bishop concluded by reiterating the company’s commitment to delivering value through innovation, flexibility, and meticulous planning. “The complexity made to look easy, executing to deliver maximum value from potential without sacrificing capital discipline,” he said, summing up ExxonMobil’s approach.

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crude, Exxon, restaurant, Stabroek Block, success

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