The recent 11th and 12th oil discoveries offshore Guyana will lead to a more complex form of field and area development that will also incorporate gas development, Head of the Department of Energy (DoE) Mark Bynoe says.
Speaking at a press conference last Monday, Bynoe revealed that, unexpectedly, four of the 12 discoveries so far have more gas in the fields than was projected.
“…as you would be aware, the Stabroek Block exploration programme continues to churn out successes above normal industry levels with the 11th and 12th discoveries at Tilapia-1 and Haimara-1 last week. These discoveries, while they remain positive news for the people of Guyana, are also leading to a more complex form of field and area development that will incorporate gas development as well,” he said.
On February 6, oil major ExxonMobil announced that it had made two additional oil discoveries offshore Guyana at the Tilapia-1 and Haimara-1 wells, bringing the total number of discoveries on the Stabroek Block to 12. The company said that the discoveries build on the previously announced estimated recoverable resource of more than 5 billion oil-equivalent barrels on the Stabroek block.
Tilapia-1 is the fourth discovery in the Turbot area that includes the Turbot, Longtail and Pluma finds.
Bynoe said that the four discoveries in the Turbot area have unusually more gas than expected and this has implications for a gas export scheme centred around the area.
He explained that the API (American Petroleum Institute) gravity – which is a measure of how light or heavy the petroleum is compared to water – in the various fields are not as uniform as expected. In areas such as at the Hammerhead find where the viscosity of the oil is heavier, this may require some of the gas to be reinjected to increase the rate of petroleum recovery, he said.
In relation to the Turbot area, Bynoe said there is a need for the operator to conduct 4D seismic surveys to assist in development planning.
Meantime, he said that ExxonMobil has already indicated their intention to submit a Field Development Plan by the second quarter for the Payara field for approval by the fourth quarter of this year, which will lead to the acquisition of a third Floating Production Storage and Offloading (FPSO) vessel.
“To put this in context, the FPSO for Payara and others is almost double the size of that which we will be having under the Liza Destiny,” he said. Liza will be the first in production.
The DoE is also involved in a gas-to-power feasibility analysis, which is currently being conducted through a donor-funded project. A final report is expected to be completed by June this year.
Bynoe also explained that they will be looking to transparent tendering to market the country’s oil based on a fee or barrel structure that will allow openness on all cost related to crude sales and high netback price, among other considerations.
