Latest update April 25th, 2024 12:59 AM
Jun 26, 2022 News
…to skyrocket in future with dozens of exploration wells planned
Kaieteur News – Searching for oil in Guyana’s Stabroek Block over the past two years will cost the nation through its oil resource, some US$406M, according to extrapolations to be made using the recently released Financial Statements for Esso Exploration and Production Guyana Limited (EEPG)—ExxonMobil Guyana.
This, since according to the records, EEPGL has listed as its Exploration Costs for the two years, at G$36,543,373,507 for its 45 percent interest in the Stabroek Block.
As such it would mean Consortium partner, Hess Guyana Exploration Ltd., would be responsible and thereby reclaiming on its 30 percent interest representing some G$24,362,249,005 while China National Offshore Oil Company (CNOOC) for its 25 percent interest would assume claims for G$20,301,874,171 representing a total claims over the two-year period for exploration costs alone at G$81,207,496,683 (US$ 406,037,483.5).
It would be apposite to note that included in the wells searching for oil over the past two years in the Stabroek Block were five wells that turned out to be dry-holes.
It should be noted that the price tag for exploration more than doubled over the years with the costs expected to increase in the coming years.
EEPGL—ExxonMobil’s subsidiary plans to, by the end of 2025, spud some 52 wells across the Stabroek and Canje Blocks during a five-year period, having begun an aggressive campaign in late December 2020.
According to the schedule of exploration activities for the company for the Stabroek Block, the company is currently engaged in an aggressive 25-well exploration campaign that begun back in June of last year. That drilling campaign is expected to last until the end of 2025.
This is in addition to a separate 12 well campaign that had started back in December 2020 in the Stabroek Block and ended earlier this year.
Additionally, the US super major is also gearing for a 12-well campaign in the Canje Block.
An application for Environmental Authorisation has since been submitted to the Environmental Protection Agency (EPA) for the 12-Well Exploration and Appraisal (E&A) Drilling Programme in the Canje Block, offshore Guyana. That campaign has since been put on hold following public objections to be considered by the EPA, as is catered for under the law.
ExxonMobil back in 2020 said publicly that it had identified considerable undrilled potential of more than 50 leads in the blocks it operates in Guyana’s offshore Exclusive Economic Zone (EEZ).
The oil major has also announced plans to do more drilling in prospects targeted in the Kaieteur Blocks.
Only recently, during the recently concluded International Energy Conference and Expo, ExxonMobil Chairman and Chief Executive Officer (CEO), Darren Woods, lauded the unprecedented achievements in Guyana.
With this in mind, he told conference delegates that the oil company was still to explore in a significant portion of its concessions that could lead to further discoveries beyond the more than 11 billion barrels of oil equivalent that would mean future development opportunities.
The ExxonMobil boss was adamant “people need access to energy including the energy resolution right here in Guyana; as people become more prosperous the need for energy will increase” and expressed the sentiment of a long future ahead in Guyana.
Jagdeo giving Exxon 102 cent to collect 2 cent.
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