Page 4 - LatAmOil Week 30 2021

COMMENTARY Y
LatAmOil COMMENTAR LatAmOil

(Image: ExxonMobil)

ExxonMobil’s busy week in Guyana

The US super-major has made two oil discoveries in the Whiptail section of at Stabroek, and the

Guyanese government is keeping close watch on its gas flaring levels and use of local content

EXXONMOBIL (US) has had a busy week in net pay. Additionally, it reported that the Whip-
Guyana, where its local subsidiary ExxonMobil tail-2 well, which is being drilled by the Noble
WHAT: Guyana is serving as operator of the Stabroek Don Taylor drillship in 1,895-metre-deep water,
ExxonMobil has found oil block. had encountered 51 metres of net pay. Both
in Whiptail-1 and -2 and On the positive side, it has reported two new wells encountered pay in sandstone reservoirs
will continue drilling both discoveries in the south-eastern part of Stabroek that contain high-quality crude oil, it reported.
wells. and has also won praise from the Guyanese gov- ExxonMobil noted that Whiptail was very
ernment for its ongoing efforts to reduce asso- close to several other big discoveries at Stabroek.
WHY: ciated gas flaring at Liza-1, the only section of The field is about 6.5 km south-east of Uaru, a
The discoveries were the block currently in production. At the same large field discovered in January 2020, and 4.8
announced shortly time, though, it has also drawn some criticism km west of Yellowtail, which ExxonMobil has
after Guyana’s Natural from Georgetown over certain provisions of its identified as its fourth development target (after
Resources Minister com- production-sharing agreement (PSA). Liza-1, Liza-2 and Payara).
mented on the company’s This essay will review all of these As noted above, the company announced the
gas flaring levels and use
of local content. developments. discoveries at Whiptail-1 and -2 before wrap-
ping up drilling. In its press release, it said that
WHAT NEXT: New discoveries drilling would continue so that deeper targets
Whiptail may eventually First, ExxonMobil announced in a press release could be tested.
be included in ExxonMo- that it had made two finds within the Whiptail Mike Cousins, ExxonMobil’s senior
bil’s list of development section of Stabroek, bringing the total number vice-president for exploration and new ventures,
targets at Stabroek. of discoveries made to date up to 22. It appears hinted that Whiptail might eventually be added
to be excited about the find, as it reported the to the list of development projects. “The discov-
discovery before it had even finished drilling at ery increases our confidence in the resource
the two sites. size and quality in the south-east area of the
In the press release, the US-based super-ma- Stabroek block and could form the basis for a
jor said that the Whiptail-1 well, which is being future development as we continue to evaluate
drilled by the Stena DrillMAX drillship in 1,795- the best sequence of development opportunities
metre deep water, had encountered 75 metres of within the block,” he said.

P4 www. NEWSBASE .com Week 30 29•July•2021