ExxonMobil has made its 18th offshore oil discovery at the Redtail-1 exploration well, the government announced this morning.
A statement from Minister of Natural Resources Vickram Bharrat follows:
Greetings All,
Fellow Guyanese, as Minister of Natural Resources with responsibility for the Petroleum Sector, it gives me great pleasure to announce Guyana’s 18th Offshore Oil Discovery at the Redtail-1 exploration well. This will add to the estimated recoverable resource of more than 8 billion oil- equivalent barrels on the Stabroek Block.
The Government of Guyana welcomes the Redtail discovery and remains committed to the development of Guyana’s Oil and Gas Resources. This discovery comes in wake of our County’s Budget for the year 2020 and complements the number of progressive measures announced by His Excellency Dr. Irfaan Ali, President of the Co-operative Republic of Guyana and Honourable Vice President Dr. Bharrat Jagdeo. I assure you that the Government will do everything possible to ensure benefits from this and other sectors enhance the lives of all our people.
The ExxonMobil exploration programme continues to identify high-quality reservoirs in close proximity to previous discoveries. This will play an integral part in our long-term growth plans which will bring significant value to Guyana’s Development.
The Redtail Discovery is an addition to the Liza 1 well, which is in production and has already yielded almost $150 million USD from the three (3) completed lifts with the 4th lift schedule for later this year. The Liza 2 well is expected to start production in early 2022 from the LIZA Unity Floating Production and Offloading Vessel (FPSO) with a capacity to produce up to 220,000 barrels of oil per day.
Additionally, upon successful conclusion of the negotiations and approval, PAYARA will follow Liza 1 & 2 with Prosperity FPSO, also producing 220,000 barrels of Oil.
The Government of Guyana is committed to ensuring Guyanese benefit from this sector, this has been demonstrated in President Ali’s appointment of the Local Content Panel. The Panel has already commenced work in this regard and will soon be holding consultations and workshops with the relevant Stakeholders with the intention to draft a policy document and eventual Local Content Legislative framework.
These significant discoveries in the new and emerging Oil and Gas Sector will provide the impetus to the Government’s effort to re-vitalize and re-capitalize the traditional productive sectors so that Guyanese can enjoy progress and contribute to wealth generation under the People’s Progressive Party administration.
Thank you.
Minister of Natural Resources
Hon. Vickram Bharrat, M.P
ExxonMobil issued the following statement today:
ExxonMobil Announces Redtail Discovery Offshore Guyana
· Oil discovery is 18th offshore Guyana; follows discovery at Yellowtail-2
· Adds to previous estimate of more than 8 billion barrels of discovered recoverable resource
IRVING, Texas – ExxonMobil has made its 18th discovery offshore Guyana at the Redtail-1 well which will add to the previously announced estimated recoverable resource of more than 8 billion oil-equivalent barrels on the Stabroek Block.
“Our Stabroek Block exploration program continues to identify high-quality reservoirs in close proximity to previous discoveries, establishing efficient opportunities for new projects in Guyana,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil. “Developing these projects remains an integral part of ExxonMobil and our co-venturers’ long-term growth plans and a source of significant value for Guyana.”
Redtail-1 encountered approximately 232 feet (70 meters) of high-quality oil bearing sandstone and was drilled in 6,164 feet (1,878 meters) of water. The well is located approximately 1.5 miles (2.5 kilometers) northwest of the Yellowtail discovery.
In addition to the Redtail-1 discovery, drilling at Yellowtail-2 encountered 69 feet (21 meters) of net pay in newly identified, high quality oil bearing reservoirs among the original Yellowtail-1 discovery intervals. This resource is currently being evaluated for development in conjunction with nearby discoveries.
Approximately 80 Guyanese employees, contractors and subcontractors took part in Redtail activities offshore, and more than 2,000 Guyanese and 600 local suppliers are supporting ExxonMobil’s activities in country. Guyanese staff have completed more than 350,000 hours of training in Guyana, Brazil, Canada, Singapore and the United States.
ExxonMobil made the first commercial discovery in Guyana in 2015 and started production in December 2019 from the Liza Destiny floating production and offloading vessel (FPSO), which can produce up to 120,000 barrels per day.
ExxonMobil continues to advance the Liza Phase 2 project, which is expected to startup in 2022 and produce up to 220,000 barrels per day. Construction activities are underway in Singapore on the Liza Unity FPSO. A third production vessel for the Payara development, with production capacity of 220,000 barrels a day, is on hold pending government approval.
The Stabroek Block is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 percent interest.
