Latest update June 2nd, 2023 12:49 AM
May 14, 2023 News
…as Govt. sides with oil company to block parent company guarantee
Kaieteur News – As Guyanese continue to call on the government of Guyana to secure a parent guarantee from American oil major ExxonMobil for its oil and gas activities in the Stabroek Block, the company’s most recent Project Summary has revealed that at least 50 simultaneous development projects will be pursued in the resource rich acreage.
Esso Exploration and Production Guyana Limited (EEPGL), the limited liability company owned by ExxonMobil has applied to the Environmental Protection Agency (EPA) for a Permit to conduct a new 35 well campaign in the Stabroek Block.
While the Permit is still pending approval, Exxon in its Project Summary has highlighted that, “The drilling of the exploration/appraisal well(s) in the Stabroek Block is expected to potentially occur simultaneously with other drilling activities, including: The Liza Phase 1 Project well drilling and production operations ; the Liza Phase 2 Development Project well drilling program and production operations; The Payara Development Project well drilling program, installation, and start of production; Ongoing exploration/appraisal well drilling operations in the Stabroek Block covered under a 25-well campaign and the Yellowtail Development Project well drilling program and installation operations.”
The company is also seeking environmental authorization from the EPA for a 12 well exploration/ appraisal programme in the Kaieteur Block and for another 12 wells in the Canje Block.
It explained that it manages its Simultaneous Operations (SIMOPs) through a structured process that includes weekly planning meetings to verify that simultaneous activities between different offshore teams (Drilling, Installation, Production, and Logistics) are managed safely.
In a recent article this newspaper reported ExxonMobil Corporation’s Senior Vice President and Chief Financial Officer (CFO), Kathy Mikells as saying that the oil giant is sparing no effort in maximising value from Guyana on all fronts, as quickly as possible.
Towards this end, Mikells said Exxon has launched an exercise that allows for the simultaneous execution of exploration, appraisal, and development activities in the Guyana basin, specifically at the Stabroek Block which has unlocked 11 billion barrels of oil equivalent resources.
She noted that the company’s approach has resulted in tremendous financial success, adding that there were two new discoveries this quarter, while two vessels continue production at rates that are above the investment basis. Mikells said, “Our technology, integration, and project management capabilities enable us to grow this unique asset at an industry-leading pace.”
The Stabroek Block 35-well exploration/appraisal drilling campaign, pending EPA approval, is expected to commence in the third quarter of 2023. Exxon said if discoveries are made, well test(s) may be performed. It is expected to run until the fourth quarter of 2028. Be that as it may, the schedule, according to the oil company, could be influenced by new discoveries, determination of the need for sidetracks, and/or well tests—all of which could extend the drilling period for the Project.
EEPGL currently has six drill ships operating offshore Guyana: the Stena Carron, the Stena DrillMAX, the Noble Bob Douglas, the Noble Tom Madden, the Noble Don Taylor, and the Noble Sam Croft. The oil company did not state whether additional drill ships will be required to support its planned developments.
So far, the company has said that the exact locations of the 35 wells comprising the Project have not been finalized. The operator said that while some of the wells will be drilled for exploration purposes, it is also possible that some of the wells may be drilled as appraisal wells within the proximity of previously drilled exploration areas. Appraisal wells are drilled to better define the physical attributes of petroleum resources that have been discovered through prior exploration activities.
If discoveries are found at particular locations, subsequent wells could be drilled in the same area to further assess the potential commerciality of the discoveries.
The Stabroek Block is located approximately 200 kilometers offshore in Guyana waters, where EEPGL has conducted substantial exploration and development activities to date.
Even though the company is seeking to extract the resources from the Guyana basin, it is not equally prepared to offer the country a guarantee that states its commitment to clean up an oil spill that may occur as a result of its offshore activities.
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