ExxonMobil Corp. and at least 12 other companies are exploring eight blocks offshore Guyana where ExxonMobil and partners have announced a series of oil discoveries on Stabroek block (Fig. 1).
The Tilipia-1 discovery well, announced in January 2019, encountered 305 ft of oil-bearing sandstone, ExxonMobil said. The Haimara-1 discovery, also announced in January, encountered 207 ft of gas-condensate sandstone. Yellowtail-1, announced in April, encountered 292 ft of oil-bearing sandstone.
Other Stabroek discoveries include Hammerhead and Pluma, which are Tertiary, while Ranger is Early Cretaceous. The Liza, Payara, Liza Deep, Snoek, Pacora, Longtail, and Turbot discoveries are Late Cretaceous.
On Sept. 16, 2019. ExxonMobil announced another oil discovery. The Tripletail-1 well, drilled in 6,572 ft of water 3 miles northeast of the Longtail discovery, encountered 108 ft of oil-bearing sandstone reservoir.
ExxonMobil affiliate Esso Exploration and Production Guyana Ltd. operates Stabroek block with 45% interest. Partners are Hess Corp. Guyana Exploration Ltd. with 30% and CNOOC Nexen Petroleum Guyana Ltd. with 25%.
ExxonMobil estimates Stabroek’s gross recoverable resource at 6 billion boe with most of it being oil. The block covers 6.6 million acres offshore Guyana.
Stabroek block could produce more than 750,000 b/d of oil and support up to five floating production, storage, and offloading (FPSO) vessels by 2025. which would be nearly 20% of ExxonMobil’s 2018 world oil and gas production, executives said.
ExxonMobil had an 86% success rate on wildcats drilled on Stabroek. Rystad Energy senior analyst Rohit Patel said 13 out of 15 wellss drilled resulted in discoveries as of Aug. 1, 2019.
Liza Destiny FPSO
The 120,000-b/d Liza Destiny FPSO arrived at Stabroek block on Aug. 29, 2019. Plans call for eight production wells to be drilled during Liza Phase 1 development. Four drill centers will handle 17 wells total; the eight production wells, six water-injection wells, and three gas-injection wells. Liza is scheduled to be brought on stream by first-quarter 2020.
Liza Phase 1 is 118 miles offshore Guyana in 4,921-6,234 ft of water. SBM Offshore converted a very large crude carrier into the Liza Destiny, which can store 1.6 million bbl of crude oil, treat 170 MMcfd of associated gas, and inject about 200,000 b/d of water.
Liza Phase 2’s development plan involves a second FPSO and related subsea equipment, umbilicals, risers, and flowlines. Liza Phase 2 is expected to develop about 600 million bbl and produce up to 220,000 b/d starting in mid 2022.
Phase 2 calls for six drill centers with about 30 wells: 15 production, 9 water injection, and 6 gas injection.
Esso Exploration & Production Guyana also operates-- Kaleteur block with 35% interest. Partners are Ratio Petroleum and Cataleya Energy, each with 25%, and Hess with 15%.
On Canje block, Esso is the operator with 35% interest. Partners are Total 35%, JHI Associates of Toronto 17.50% and Mid-Atlantic Oil & Gas of Guyana with 12.50%.
JHI said a Canje block exploration well, expected to spud before Dec. 31, 2019, will target a Liza-like prospect. All three of Stabroek’s proved play types are also prospective in Canje block, which is in 1,700-3,000 m of water, JHI said.
Anadarko Petroleum Corp., acquired by Occidental, held 100% interest in Roraima block. The ownership status of Roraima was unclear as of OGJ presstime. A territorial dispute involving Venezuela has prevented exploration there.
Tullow’s drilling plans
Tullow Oil announced the Jethro-1 well encountered 55 m of net oil pay on the Orinduik block, and estimated Jethro-1 could hold more than 100 million bbl. The Orinduik block covers 1,800 sq km of the Guyana-Suriname basin.
Tullow said Sept. 16, 2019, that the Joe-1 well confirmed an Upper Tertiary oil play on the Orinduik block.
Paul McDale, Tullow chief executive officer (CEO), said Aug. 29 that Jethro-1’s Lower Tertiary reservoir likely will demonstrate enough commercial value to merit a standalone development. An appraisal program is scheduled for 2020.
Eco Atlantic CEO Gil Holzman said Jethro-1 derisks future exploration on the block and provides the companies with a better understanding of the geology.
Previously, Rystad Energy included Jethro-1 on its list of high-impact exploration wells worldwide for 2019.
The Stena Forth drillship drilled Jethro-1 to 4,400 m TD in 1,350 m of water (Fig. 2). Logging data confirms Jethro-1 encountered high-quality Lower Tertiary sandstone reservoirs.
Tullow Guyana BV operates the Orinduik block with 60% interest. Total E&P Guyana BV holds 25% interest, and Eco Atlantic Oil & Gas Ltd. of Guyana holds 15% interest.
In a farm-in agreement yet to be approved Guyana’s government, Qatar Petroleum will obtain 10% interest from Total’s interest in the Orinduik block, leaving Total with 15%.
Rystad Energy exploration analyst Palzor Shenga said regarding Orinduik, “After dominating the list of major offshore discoveries in 2018, Guyana has extended its winning streak. With multiple prospects identified, Tullow and its partners could easily be sitting on a multi-billion-barrel block.”
Plans call for Repsol to drill the Carapa-1 well in the adjacent Kanuku block starting in late September 2019. Repsol operates Kanuku block with 37.5% and Tullow Oil also holds 37.5% interest. Qatar Petroleum has agreed to obtain 10% from Total, leaving Total with 15% in Kanuku block pending Guyana government approval.
Tullow offers knowledge that “will be extremely helpful on the Carapa-1 well,” Shenga said, adding Tullow completed “an extremely cost-efficient drilling operation at Jethro-1.”
CGX revises plans
CGX Energy Inc. of Toronto announced Aug. 2, 2019, that the government of Guyana approved a renegotiated work program for the Corentyne block, operated by CGX Resources Inc., which holds 66.67%. Joint venture partner Frontera Energy Guyana Corp. holds 33.33%.
CGX plans a seismic survey over northern Corentyne block before drilling a well there by Nov. 27, 2019.
The Corentyne block covers 1.125 million net acres in shallow water.
During 2012 drilling to assess Corentyne’s potential, CGX found water-bearing sandstones with hydrocarbon shows in the Eagle-1 wildcat. CGX then owned 100% of the license.
Eagle-1 reached 4,328 m TD in Upper Cretaceous (Maastrichtian) in an 8½-in. hole and with synthetic oil-base drilling fluid. It encountered oil and gas shows through the objective Eocene and Maastrichtian geologic zones and in the Oligocene zone, indicating an active petroleum system.
CGX and Frontera Energy also now plan to spud a well in the Demerara block during 2020. Original plans called for drilling in Demerara during February 2021, but the schedule was renegotiated, CGX said.
The company operates Demerara with 66.67% interest and Frontera Energy holds 33.33%.
During 2019, CGX’s subsidiary Grand Canal Industrial Estates will work on a deepwater port in the Berbice River to stage exploration wells.
CGX also owns 62% of ON Energy, which wholly holds the Berbice block. A seismic survey is planned for Berbice by Feb. 12, 2020.