Eight successful wells drilled by Exxon in 2024

Apr 11, 2025 News

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…as Guyana’s reserves remain stagnant —-Hess says in Annual Report

Kaieteur News- In 2024, ExxonMobil Guyana Limited (EMGL), the operator of Guyana’s oil-rich Stabroek Block drilled eight exploration and appraisal wells successfully, which encountered hydrocarbons.

This was revealed by Hess Corporation in its 2024 Annual Report, recently published.

An exploration well refers to a deep test hole that is drilled by petroleum companies to locate reserves of recoverable oil and gas. On the other hand, an appraisal well is a well drilled to gather additional information about a hydrocarbon discovery or reservoir.

To this end, the Report states, “In 2024, the operator drilled a total of eight successful exploration and appraisal wells that encountered hydrocarbons…”

In addition to the successful wells, the Annual Report said the operator encountered “one unsuccessful exploration well for which the well costs were expensed.”

Meanwhile, Hess indicated that in 2025, ExxonMobil plans to utilize five drillships to continue to perform exploration, appraisal, and development activities.

Hess Guyana Exploration Ltd. a subsidiary of Hess Corporation holds 30 percent interest in the Stabroek Block, while CNOOC Petroleum Guyana Limited holds 25 percent interest and Exxon 45 percent.

The 6.6 million acres block is operated by EMGL, with 46 discoveries announced to date. During the presentation of this year’s Budget, Finance Minister, Dr. Ashni Singh informed that five new discoveries were made in 2024.

Despite the announcement of new discoveries and ongoing appraisal activity by ExxonMobil in the Stabroek Block, government maintains that the country’s reserves have not significantly grown since 2022.

Following the last resource update in April 2022, the Ministry of Natural Resources in August 2024 said the country’s reserves grew by a mere 600 million barrels, from 11B barrels.

It was the subject Minister, Vickram Bharrat who told reporters at a press conference, “I think we have moved to 11.6B now, 11.6B barrels equivalent offshore in the Stabroek Block now and that by itself is a significant find.”

Meanwhile, in a subsequent press engagement, President of EMGL, Alistair Routledge said the company’s estimate was lower than the 11.6B figure shared by government.

This newspaper had asked him to share the number of new discoveries that were appraised for the company to arrive at the new resource estimate of 11.6 billion barrels.

To this end, he explained, “The government released a number of 11.6B oil equivalent barrels, ExxonMobil’s estimate is lower than that number…our number remains a little under 11 billion oil equivalent barrels.” Furthermore, he noted that the company is obligated to make such reports to the US Securities and Exchange Commission, making the point that Exxon was not keeping the figures away.

Meanwhile, in explaining the variation between Exxon’s figures compared to the reserves announced by government, Routledge noted that the state conducts independent studies, although it is supplied with data by the company.

“They also do independent studies (and) verifications with other consultants and the work that they do themselves and the GGMC and Ministry of Natural Resources so it’s quite normal to have a slightly different view of the number,” he reasoned.

Hiding reserves

Notably, former Head of the Environmental Protection Agency (EPA), Dr. Vincent Adams had said ExxonMobil, could be hiding Guyana’s true oil reserves, as this would reduce the sum that could be deducted by the company for decommissioning activities.

Decommissioning refers to the cleanup and restoration of the environment following the end of the life of an oil project. It involves the safe plugging of wells and removal of equipment used during the operations, including the Floating Production Storage and Offloading (FPSO) vessel.

Dr. Adams, a Petroleum and Environmental Engineer hinted that the company may be deliberately keeping the nation in the dark on its real oil reserves as this would affect the monies it can deduct and hold in its account for decommissioning.

He explained, “If you read the contract and this might be tied to something else because remember the issue that was raised about the money being withdrawn for decommissioning that goes into Exxon’s Bank Account? The amount that is being withdrawn is calculated and here is how that amount is being calculated: it’s being calculated by dividing the (decommissioning) budget…you divide that number by the reserves and then you multiply it by the amount that has been produced.”

Consequently, the former head of the EPA noted, “Right now, they are dividing by 11B barrels, if you divide it by let’s say 18B barrels…you are reducing it by almost half as to what they can withdraw for decommissioning so is there a suspicion that is tied to it?”

Government has however denied hiding the reserves, explaining that higher reserves would be good for the company and could increase stocks for the American oil major.

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• appraisal, Drilling, Exploration, Hess, reserves, wells

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