January 06, 2022
The government of Guyana on Wednesday announced two new economically viable oil discoveries by Exxon Exploration and Production Guyana (EEPGL) and partners at Fangtooth-1 and Lau-Lau-1 Wells Offshore Guyana within the Stabroek Block.
At a press release, Vickram Bharrat M.P, minister of natural resources, noted the Fangtooth-1 well revealed approximately 194 feet (59 meters) of high-quality oil-bearing reservoirs. The well was drilled in 6030 feet (1838 meters) of water and is located approximately 11 miles (18 kilometers) west of the Liza and Payara fields. While the Lau-Lau-1 well exposed approximately 302 feet (92 meters) of high-quality hydrocarbon-bearing reservoirs. The well was drilled in 4793 feet (1461 meters) of water and is located approximately 41 miles (68 kilometers) southeast of the Liza field.
The government of Guyana said it remains confident that these two additional discoveries, which add to the 26 commercially feasible finds, will further strengthen Guyana’s position as a country with world-class discoveries of high-quality hydrocarbon. Therefore, the government will continue engaging all stakeholders towards the exponential development of these resources for all Guyanese while maintaining a social, economic, and environmental balance. Additionally, the government of Guyana is continually examining possibilities to strengthen oversight and management of the exploration programmes of all operators to further expand the sector through commercial discoveries.
The government also announced that the Liza Unity FPSO is on track to commence production in early 2022, while the Prosperity FPSO vessel for the Payara field is undergoing construction in Singapore for a planned production start-up date in 2024. The Liza Unity FPSO has a capacity of approximately 220,000 barrels of oil per day, which will complement the Liza Density FPSO currently producing approximately 120,000 barrels of oil per day, branding Guyana as an oil-producing economy to approximately 340,000 barrels of oil per day in 2022.
According to the release, the ministry of natural resources and the government of Guyana welcome these two new discoveries offshore Guyana and remain even more committed to the sustainable exploration and development of Guyana’s oil and gas resources.
“I would like to reassure all Guyanese and stakeholders that this will be undertaken in keeping with international best practices for compliance and transparency within the petroleum sector and to ensure benefits are derived for all Guyanese,” Vickram Bharrat, Minister of Natural Resources lamented.
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer(s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view(s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.