Energy giant ExxonMobil, the largest U.S. oil company, announced Wednesday two new discoveries at the Sailfin-1 and Yarrow-1 wells in the Stabroek block offshore Guyana. XOM has made over 30 discoveries on the block since 2015. ExxonMobil reports its third-quarter profit earnings before the market open Friday. $XOM has been boosted by rising oil and fuel production, higher energy prices and cost cuts. After the news XOM traded up at $107.40 +1.52 or 1.44% just short of it’s all time high of $107.68.
ExxonMobil Huge Liza Field Acreage in Guyana
Encountered approximately 312 feet (95 meters) of hydrocarbon-bearing sandstone and was drilled in 4,616 feet (1,407 meters) of water.
Encountered approximately 75 feet (23 meters) of hydrocarbon-bearing sandstone and was drilled in 3,560 feet (1,085 meters) of water.
Both wells were drilled by the Stena Carron drillship.
Liam Mallon, president of ExxonMobil Upstream Company. “We are committed to responsibly and safely developing this world-class resource to help meet global demand for secure, reliable and lower-emission energy. Our investments through the pandemic have allowed us to increase supply at this critical time, while creating value for the people of Guyana, our partners and shareholders.”
ExxonMobil said their first two sanctioned offshore Guyana projects, Liza Phase 1 and Liza Phase 2, are now producing above design capacity and achieved an average of nearly 360,000 barrels of oil per day in the third quarter.
- A third project, Payara, is expected to start-up by the end of 2023
- A fourth project, Yellowtail, is expected to start-up in 2025.
- ExxonMobil is currently pursuing environmental authorization for a fifth project, Uaru.
By the end of the decade, ExxonMobil expects Guyana’s oil production capacity to be more than one million barrels a day.
Offshore Guyana production capacity increased to more than 340,000 boe/d with Liza Phase 2 production start-up earlier this year and Liza Phase 1 producing above design capacity. In addition, two new discoveries were announced. The company also reached an agreement to supply the country of Guyana with natural gas to significantly reduce domestic energy costs and provide opportunities for industrial growth.
Guyana’s Stabroek block
Guyana’s Stabroek block is 6.6 million acres (26,800 square kilometers).
- ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the operator and holds 45% interest in the block.
- Hess Guyana Exploration Ltd. holds 30% interest
- CNOOC Petroleum Guyana Limited holds 25% interest.
ExxonMobil, one of the largest publicly traded international energy and petrochemical companies, creates solutions that improve quality of life and meet society’s evolving needs.
The corporation’s primary businesses – Upstream, Product Solutions and Low Carbon Solutions – provide products that enable modern life, including energy, chemicals, lubricants, and lower-emissions technologies. ExxonMobil holds an industry-leading portfolio of resources, and is one of the largest integrated fuels, lubricants and chemical companies in the world. via XOM
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