Exxon targeting two more discoveries in Stabroek Block this year - Senior Vice President

Exxon targeting two more discoveries in Stabroek Block this year – Senior Vice President

Mar 11, 2024 News

ExxonMobil’s Senior Vice President, Neil Chapman

Kaieteur News – Senior Vice President of ExxonMobil Corporation (XOM), Neil Chapman recently revealed that the company will be ‘anchor-hunting’ for two to three new discoveries in the prolific Stabroek Block this year.

ExxonMobil holds a 45% interest in the Stabroek Block, while its co-venturers, Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.

Since 2015, Exxon has unlocked 40 discoveries in the 26,800 square kilometers block, amounting to over 11 billion barrels of oil. In 2023, two new discoveries were made.

Chapman while appearing at the Morgan Stanley’s Energy and Power Conference on Wednesday in New York discussed the company’s strategy and its intent to push production to 1.2 million barrels of oil in Guyana by 2027. Currently, Exxon is producing over 600,000 barrels of oil per day (bpd) from its three operational projects, Liza One, Liza Two and Payara. Each of the Floating Production Storage and Offloading vessels (FPSOs) are producing above the designed production levels.

Chapman said, “This is an enormous block and it’s actually quite phenomenal if you go down there. We have six drilling ships in the basin in pretty close proximity.” He pointed out that the Stabroek Block is in fact equivalent to more than 1,000 blocks in the Gulf of Mexico. Already enjoying the successes of the Guyana basin, Exxon is looking to secure at least two more discoveries this year.

He explained, “so our plans for this year and I may not get the numbers right but in order of magnitude this is correct, we are continuing to appraise that south east corner because it’s an enormous area and we’re continuing to appraise and so whether you call it an appraisal well or an exploration well, (the) order of magnitude, seven or eight of which I would call two of them are true what we call in Exxon anchor hunting objectives…they’re north of Liza and Payara and these are looking for, I would say, new anchor discoveries, which are successful, you can build off.”

Chapman added, “Maybe there’s one more you can put in that category as well, but the other four or five are appraisal wells in the vicinity of our existing discoveries which may lead to more discoveries.”

ExxonMobil has been given the government’s blessings to ramp up exploration and production activities across the block. The Environmental Protection Agency (EPA) in 2023 approved ExxonMobil’s 35 Multi-well Exploration and Appraisal Drilling Campaign. In the meantime, government continues to ignore calls to engage Exxon for a better deal for its citizens.

The contract signed with Exxon has been deemed the ‘worst’ oil deal by this government, but it has determined it will not seek a renegotiation. Citizens fear that due to the lack of ring-fencing and other key provisions such as the tax-free holidays granted to Exxon and its sub-contractors, Guyana will continue to collect a meager share of revenues from the sector well into the future.

The deal allows Exxon to deduct 75% of the monthly earnings to cover its investments. The remaining 25% is then shared equally with Guyana. This means Guyana receives 12.5% of the profits and 2% royalty as agreed in the contract.

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discoveries, ExxonMobil, oil

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