American oil firm ExxonMobil will be drilling more wells after an appraisal well confirmed the presence of a significant deposit of oil in the location close to where the first well was drilled.
A senior official yesterday confirmed that the Liza-2 appraisal well was recently completed and it confirmed the large deposit of hydrocarbons within the vicinity of the first well, the Liza-1, where the company hit oil last year. However, it was pointed out that all the particulars such as how big the reservoir is, the conditions of the reservoir such as the pressure within and so on, have not yet been determined.
ExxonMobil will now expand its drilling campaign.
In an ad in yesterday’s Kaieteur News, the Maritime Administration Department advised that Esso Exploration and Production Guyana Ltd which operates as the local subsidiary of Exxon Mobil Corporation, will commence a drilling programme within the Stabroek Block offshore Guyana on July 1. This exercise is scheduled to last for six months. The drill site is approximately 116 nautical miles from the coast of Guyana and covers an area of four square kilometres, the ad said.
Several ships will be used and all mariners are requested to stay clear of the vessels and navigate with caution when in its vicinity.
A high-level source told Stabroek News that the Liza-2 well was recently completed and confirmed the large deposit. The new wells to be drilled form part of an appraisal programme to try and define the limits of that particular deposit, the source said. The source added that when this is completed, the company would then be definitively be able to say “OK this reservoir is productive and commercially so.”
Stabroek News was also told that other wells are to be drilled in ExxonMobil’s Stabroek block that pertain not only to the first discovery area but to potentially new discovery areas. It was noted too that the Liza-1 well is in deep waters and there are some peculiarities in the way it was drilled.
Bryan Hunt, the outgoing Deputy Chief of Mission at the US Embassy here, had told Stabroek News last week that revenues from ExxonMobil’s oil find here could be at least four times Guyana’s national budget at current market prices. He said that if the price rises, or more oil is discovered, it could be significantly more.
In May last year, ExxonMobil reported a “significant oil discovery” at its Liza-1 well offshore Guyana. It had been previously reported that with the new drilling programme that began earlier this year, the American firm is likely to drill between four to six wells split between an appraisal of Liza as well as wildcats.
Other oil exploration companies are also moving forward with their exploration programmes that could see drilling activities commence soon.