Guyana petroleum resources continue to increase with two new oil discoveries

Government on Wednesday said it welcomes the announcement of two additional oil discoveries by ExxonMobil, at Sailfin-1 and Yarrow-1 Offshore Guyana, within the Stabroek Block.

A press statement issued by the Ministry of Natural Resources expressed the government’s anticipation that the additional discoveries will further increase Guyana’s petroleum resources, with over 30 discoveries being made within the Stabroek Block since 2015.

As such, the ministry and its regulatory agencies continue to build capacity to enhance monitoring and exploration activities, as Guyana’s offshore development and production accelerate at a pace that exceeds the petroleum industry average.

“The Ministry of Natural Resources was advised that the Sailfin-1 well encountered approximately 312 feet (95 meters) of hydrocarbon-bearing sandstone and was drilled in 4,616 feet (1,407 meters) of water. The Yarrow-1 well encountered approximately 75 feet (23 meters) of hydrocarbon-bearing sandstone and was drilled in 3,560 feet (1,085 meters) of water. Both wells were drilled by the Stena Carron drillship,” the statement read.

According to the statement, Minister of Natural Resources, Vickram Bharrat said the petroleum sector’s regulatory agencies were mandated to enhance collaboration with all other operators to expedite their drill programmes, as the government seeks to further expand the sector through the discoveries of recoverable high-quality hydrocarbon.

Additionally, he noted that the much-anticipated bidding round for the oil blocks offshore Guyana is expected to bring new and emerging major petroleum companies to further increase Guyana’s oil and gas potential.

Currently, the first two offshore projects, Liza Phase 1 and Liza Phase 2, are producing above design capacity and achieved an average of nearly 360,000 barrels of oil per day in the third quarter.

A third project, Payara, is expected to start up by the end of 2023, and a fourth project, Yellowtail, is expected to start up in 2025. Further, ExxonMobil is also pursuing environmental authorisation for a fifth project, Uaru. By the end of the decade, ExxonMobil expects Guyana’s oil production capacity to be more than one million barrels a day.

The Government of Guyana remains committed to the sustainable exploration and development of Guyana’s oil and gas resources in keeping with international best practices for production, compliance, and transparency within the petroleum sector, and ensuring benefits are derived for all Guyanese.

The discoveries will provide additional resources for the government in fulfilling its manifesto promises as it relates to developing the oil and gas sector for the benefit of the country.