Exxon increases Guyana’s resource estimate after new discovery

An Exxon gas station is seen in Houston, Texas, the United States on April 30, 2019. REUTERS / Loren Elliott / File Photo

Oct. 7 (Reuters) – Exxon Mobil (XOM.N) raised the resource estimate for its Stabroek block off Guyana by one billion barrels of oil equivalent, which includes a new discovery, as it develops the one of the world’s largest oil and gas blocks over the past decade.

The updated estimate of 10 billion barrels of oil equivalent, including that from the new discovery of the Cataback-1 well, brings the total number of significant discoveries in the Stabroek block to 21, the company said Thursday.

Guyana and neighboring Suriname have become one of the most sought-after oil exploration hotspots and Exxon’s key to increasing its future oil production. Last month, he announced a discovery at Pinktail in the Stabroek block, without specifying the size of the reserves. (https://reut.rs/3uPmBDu)

The oil and gas major operates the 6.6 million acre Stabroek block as part of a consortium that includes Hess Corp (HES.N) and Chinese CNOOC Ltd (0883.HK).

The Exxon subsidiary is the operator of the block with 45% interest, Hess Guyana Exploration Ltd holds 30% and CNOOC Petroleum Guyana Ltd 25%. The consortium started producing crude at the end of 2019.

The recent discoveries further strengthen the development potential of the Stabroek block, Exxon said in its press release.

“We continue to see several billion barrels of additional exploration potential on the block,” said John Hess, CEO of Hess, in a separate statement.

Guyana announced in August that it plans to increase its oil royalties and revamp other contractual terms under a new profit-sharing agreement (PSA) for future crude and gas projects, currently at the draft stage.

Report by Arunima Kumar in Bangalore; edited by Uttaresh.V

Our Standards: Thomson Reuters Trust Principles.

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