ExxonMobil Corp. has informed the Guyanese government that it intends to fast-track development of the Liza discovery on the 6.6 million-acre Stabroek block (OGJ Online, June 30, 2016). The company’s partners, Nexen Energy ULC and Hess Corp., gave Minister of Natural Resources Raphael Trotman notice of the discovery’s commercial quantities early last week.
ExxonMobil announced that the Liza-1 well encountered more than 295 ft of high-quality, oil-bearing sandstone in May 2015. The Liza-2 well, drilled 120 miles offshore Guyana, encountered more than 190 ft of oil-bearing sandstone reservoirs in Upper Cretaceous formations.
The Liza-2 well was drilled to 17,963 ft in 5,551 ft of water about 2 miles from the operators first exploration well, Liza-1, on the 6.6 million acre Stabroek block.
ExxonMobil’s notification is the first time Section 31 of Guyana’s Petroleum Act has been activated in its 50-year history as an independent nation. “This is profound and watershed moment in the development of our country,” Minister Trotman said in a press report.
Esso Exploration & Production Guyana Ltd. is operator and holds 45% interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Nexen Petroleum Guyana Ltd. holds 25% interest.