ExxonMobil Corp. reported an oil discovery offshore Guyana with the Yellowtail-1 well on Stabroek block, bringing to 13 the total discoveries on that block and adding to an estimated recoverable resource of 5.5 billion boe.
Yellowtail-1, the fifth discovery in the Turbot area that includes Tilapia, Turbot, Longtail, and Pluma discoveries, is expected to become a major development hub, the company said in a press statement.
Yellowtail-1 encountered 292 ft of oil-bearing sandstone reservoir and was drilled to 18,445 ft in 6,046 ft of water. The well is about 6 miles northwest of the Talapia discovery reported in February.
“Similar to the Liza area, successive discoveries in the Turbot area have continuously grown its shared value,” said Mike Cousins, senior vice-president of ExxonMobil exploration and new ventures.
The discovery is the third made on Stabroek block this year. The Tilapia-1 well, 3.4 miles west of the Longtail-1, encountered 305 ft of oil-bearing sandstone reservoir. The Haimara-1 well, 19 miles east of the Pluma-1, encountered 207 ft of gas condensate-bearing sandstone reservoir (OGJ Online, Feb. 6, 2019).
Exploration and development activities continue at other locations on the block. The Noble Tom Madden drillship began drilling Yellowtail-1 on Mar. 27 and will next drill the Hammerhead-2 well. The Stena Carron is completing a well test at the Longtail-1 discovery and upon completion will drill Hammerhead-3. Later this year, the Stena Carron will drill a second well at the Ranger discovery. The Noble Bob Douglas drillship is completing development drilling operations for the Liza Phase 1 development. The company is evaluating plans to add another exploration drillship, bringing to four the number of drillships offshore Guyana.
ExxonMobil is considering using at least five floating production, storage, and offloading vessels on the Stabroek block, expected to produce more than 750,000 b/d by 2025. The Liza Phase 1 development is expected to produce as much as 120,000 b/d in first-quarter 2020 via the Liza Destiny FPSO (OGJ Online Dec. 28, 2018). Drilling of Phase 1 development wells by the Noble Bob Douglas drillship is proceeding and installation of subsea infrastructure is under way, with installation of subsea umbilicals, risers, and flowlines planned for this year’s second quarter. Installation of topside modules on the Liza Destiny FPSO is complete, and commissioning activities are under way. The vessel is expected to arrive offshore Guyana in this year’s third quarter.
Liza Phase 2 is expected to start by mid-2022. Pending government and regulatory approvals, sanctioning is expected in this year’s first quarter. Liza Phase 2 use a second FPSO, the Liza Unity, designed to produce up to 220,000 b/d. A final investment decision is expected soon, subject to government and regulatory approvals.
Sanctioning of a third development, Payara, is expected late this year with start first production expected in 2023. The Payara development is expected to have the capacity to produce 180,000-220,000 gross b/d from a third FPSO.
Stabroek block is 6.6 million acres. Esso Exploration & Production Guyana Ltd. is operator with 45% interest. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Ltd., a wholly owned subsidiary of CNOOC Ltd., holds 25% interest.
