ExxonMobil and its exploration and production partners have struck it rich in again in deep water off the shore of the South American country of Guyana.
The oil giant, along with Hess and CNOOC, announced this week that it made its seventh oil find at the Pacora-1 exploration well in the massive Stabroek Block area off the country in northeast South America, close to the Caribbean.
It was the seventh discovery in the Stabroek field. The drilling rig, Exxon said, found “approximately 65 feet of high-quality oil-bearing sandstone reservoir. The well was safely drilled to 18,363 feet (5,597 meters) depth in 6,781 feet (2,067 meters) of water. Drilling commenced on Jan. 29, 2018.” Exxon has estimated that the Stabroek field could yield over three billion barrels of oil.
“This latest discovery further increases our confidence in developing this key area of the Stabroek Block,” said Steve Greenlee, president of ExxonMobil Exploration Company. “Pacora will be developed in conjunction with the giant Payara field, and along with other phases, will help bring Guyana production to more than 500,000 barrels per day.”
“It’s certainly good news for Guyana,” said Rene Santos of S&P Global Platts Analytics. The Face2Face Africa website said, “English-speaking country Guyana often considered part of the Caribbean region may soon become the biggest oil producer in the Western Hemisphere as it continues to make some of the biggest finds.” Raphael Trotman, Guyana minister of natural resources, said, “To date, we have overseen the drilling of seven wells by Exxon, six of which have borne fruit in that they have proven good.”
The South American discovery comes as Exxon is abandoning its ambitious joint ventures with Russia’s Rosneft oil company, the Financial Times reports. The FT said Exxon is “walking away from a partnership promising big new projects in areas including the Arctic and the Black Sea that were once important growth prospects but have been hit by U.S. sanctions.” Ironically, U.S. Secretary of State Rex Tillerson, former head of ExxonMobil, was directly involved in negotiating the Rosneft deal.
The FT said, “The formal withdrawal after years of limbo ends a troubled strategic cooperation agreement that was signed in 2011 with much fanfare, but was called into question after the U.S. and E.U. imposed sanctions against Russia following Moscow’s 2014 invasion and subsequent annexation of Crimea.” The British business newspaper added, “The partnership, formed after the collapse of a similar deal between Rosneft and BP, was seen as a strategic coup for Rex Tillerson….”
The collapse of the U.S.-Russia deal does not affect the Sakhalin 1 deal between the U.S. and Russia, the newspaper reported. The account added, “With its ambitions in Russia thwarted, Exxon has been turning its attention elsewhere, including U.S. shale oil fields in the Permian Basin of Texas and New Mexico, and the deep waters off Guyana, where it has made significant discoveries.”
— Kennedy Maize