Exxon Mobil discloses another oil discovery at Pinktail, offshore Guyana
U.S. oil major Exxon Mobil Corp XOM-N +0.07%increasesaid on
Thursday it had made a discovery at Pinktail in the Stabroek Block offshore
Guyana, as it develops a major new oil and gas find.
Exxon operates the 6.6-million-acre Stabroek Block as part
of a consortium that includes Hess Corp HES-N -0.15%decreaseand China’s CNOOC
Ltd. It has made at least 20 discoveries there.
The company said the find would add to the previous
recoverable resource estimate of more than 9 billion barrels of oil and gas,
without specifying the size of reserves in its latest discovery.
The company’s second offshore production facility, the Liza
Unity, set sail from Singapore to Guyana in early September. The floating
production storage and off-loading (FPSO) vessel is crossing the East Indian
Ocean, with an estimated arrival in Guyana on Nov. 15, according to Refinitiv
Eikon vessel tracking data.
The Unity FPSO will be utilized for the Liza Phase 2
development and is expected to begin production in early 2022, with an output
capacity of about 220,000 barrels per day (bpd) of oil.
The consortium began producing crude in late 2019. Hess
Chief Executive Officer John Hess said in remarks to the Barclays CEO
Energy-Power Conference on Thursday the Liza 1 project was producing at its
nameplate capacity of 120,000 bpd.
He said the company expected the Stabroek block to produce
at least 1 million bpd through six FPSOs by 2027.
The Payara project, the consortium’s third in the Stabroek
block, is expected to start up in 2024, Hess told an investor conference hosted
by Barclays.
Exxon expects to submit a development plan for its fourth
Guyana project, Yellowtail, later this year, said Hess.
Hess Chief Operating Officer Greg Hill said he expected
Guyana’s government to approve the consortium’s development plan for
Yellowtail, its fourth project, by the end of this year.
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