Guyana area E&P - moving 2-3 times faster than others

Brazil has a lot more than 6 drillships working, not to mention the news in May
that Brazil is tendering for an additional 8 ships.

I'm still wondering if the Valaris DS-17 reactivation is the first of the 8 tenders
being filled in Brazil. I think we all agree that it's lucrative enough to be
classified as a dayrate inflection. The contract was $327 million for 540 days which
includes $86 million in reactivation and mobilization help. That makes the dayrate
327 minus 86 divided by 540 equals $446k per day.

The Valaris deal will likely come up in the negotiations for the 2 drillships in India
that Transocean won the initial bid for. That one was suggested to be around $500k per
day all in but might also involve reactivation help and most certainly will involve
mobilization reimbursement.

It looks like a lot of new deepwater holes are going to be going into the sea floor here...

Could Block 58 become the next Stabroek?

By OilNOW - July 12, 2022
oilnow.gy/featured/could-block-58-become-the-next-stabroek/



Controlled by TotalEnergies and APA Corporation, Block 58 has churned out major discoveries – five thus far. Though few, compared to Guyana’s Stabroek Block, the discoveries have piqued investor interest leaving a lingering question – could Block 58 become the next Stabroek?

With close to 11 billion proven barrels of oil equivalent (boe), spread across 30 discoveries, the ExxonMobil-operated Stabroek Block has already made its mark on the global oil and gas market. And its success will only grow tenfold as the Guyana government and Exxon press full steam ahead with its development.

It is this success that Suriname aims to emulate and even surpass with Block 58 that borders the Stabroek Block and spans some 1.4 million acres. TotalEnergies is the operator of Block 58, with 50% operating interest, while APA Corporation holds the remaining 50%.

Block 58’s five discoveries are at Maka Central, Kwaskwasi, Sapakara, Keskesi and Krabdagu. Kwaskwasi has been called a giant in the Guyana-Suriname basin, with analysts comparing it to Exxon’s Liza find in the Stabroek Block. Krabdagu has also caused quite a buzz for Suriname.

The Krabdagu-1 well is located about 18 kilometers southeast of Sapakara South. Drilled at a water depth of 780 meters, it encountered approximately 90 meters of net oil pay in good quality Maastrichtian and Campanian reservoirs. Flow test results at Krabdagu point to oil-in-place resource of approximately 180 million barrels (MMbbls).

The non-commercial discovery at the Keskesi South-1 well was daunting to TotalEnergies and APA but Krabdagu brought renewed hope and excitement at the Block’s other prospects.

“The promising discovery at Krabdagu is another important step toward achieving our first FID in Block 58 offshore Suriname, and we look forward to continuing our exploration and appraisal programs,” said John J. Christmann IV, APA’s CEO and president.

United States multinational investment bank Morgan Stanley had said in 2020, prior to the Keskesi and Krabdagu discoveries, that its modeling of Block 58 shows it contains a potential 6.5 billion barrels of oil equivalent resources which can be developed across seven phases.

TotalEnergies and APA are banking on more successful finds to up the current resource count.

Excitement brought to the Suriname side of the basin from the finds already made at Block 58 is stirring exploration activity in nearby prospects. Drilling at five high-impact wells is already planned for 2022.

Suriname has also planned two major oil block auctions: deepwater in 2022 and shallow water in 2023.

And if the Dutch-speaking nation plays its cards right, it may get the sought-after Stabroek Block success.

Guyana is world-class leader in fast-tracking oil resources – T&T Energy Chamber Head

By OilNOW - July 16, 2022
oilnow.gy/featured/guyana-is-world-class-leader-in-fast-tracking-oil-resources-tt-energy-chamber-head/

The record pace that Guyana has developed its oil and gas resources has been lauded by the President and Chief Executive Officer (CEO) of the Energy Chamber of Trinidad and Tobago, Dr. Dax Driver. And with the world’s transition to cleaner, renewable energy approaching, Dr. Driver has urged Guyana to “market its resources” as fast as it can to get the most out of it.

Appearing on the latest edition of the Transforming Guyana webinar, the Energy Chamber CEO pointed out that this was the best direction for Guyana, as delayed production could result in “stranded assets.”

Exxon unrivalled in the deep; developing Guyana oil fields at record pace | OilNOW

Dr. Dax Driver

“For countries like Guyana and Suriname, with these massive oil resources in place, and some of them transitioning into reserves and some being produced, priority has to be to fast-track development of those resources. This is something which Guyana has done extremely well since its first discovery. It is a world leader in fast-tracking its discoveries,” Dr. Driver pointed out.

In less than five years from the first oil discovery, Guyana moved to production and now has a second development online. The third and fourth projects have already been approved. The application process for the fifth development, called Uaru, has already begun.

The T&T Energy Chamber Head said that other oil-producing countries in South America and the Caribbean should be following in Guyana’s footsteps.

ExxonMobil’s success in Guyana “unmatched” in modern history – Darren Woods | OilNOW

“I think the key message here is to get your resources to market as quickly as you possibly can. This is something that policymakers should take into account. Otherwise, you will be left with assets you cannot monetise in the future,” he urged.

Guyana’s Stabroek Block operator, ExxonMobil, has already made over 30 significant finds totaling close to 11 billion barrels. And the country’s oil and gas success will only get bigger and better. Exxon’s CEO Darren Woods had said that by the end of the decade, production could increase to more than one million barrels per day; production this year will be around 350,000 barrels per day.

The company sees potential for 10 floating production storage and offloading (FPSO) vessels to develop the current proven resource estimate. Presently, it has determined that six FPSOs will be operating offshore by 2027, producing about 1.2 million barrels per day.

CGX Secures Funds for Wei-1 Exploration Well Off Guyana. Spud Date Set for October

7/22/22
brazilenergyinsight.com/2022/07/22/cgx-secures-funds-for-wei-1-exploration-well-off-guyana-spud-date-set-for-october/

(OE) CGX, a Toronto-based oil and gas firm focused on the Guyana-Suriname Basin, has secured funding for its next offshore exploration well in Guyana’s Corentyne block by agreeing to farm out a portion of its interest to its partner Frontera.

As part of the agreement, CGX will transfer 29.73% of its interest in the Corentyne block to Frontera in exchange for Frontera funding the Joint Venture’s costs associated with the Wei-1 exploration well for up to US$130 million and up to an additional US$29 million of certain Kawa-1 exploration well, Wei-1 pre-drill, and other costs.

Also, CGX will assign an additional 4.94% of its stake to Frontera to repay loans previously given to it by Frontera.

As a result of the agreements, CGX will have a 32.00% participating interest, and Frontera will have a 68.00% participating interest in the Corentyne block .

“CGX is pleased to complete this farm-in agreement with Frontera, which enables CGX to strengthen its balance sheet and secure funding for the Wei-1 exploration well. Our continued partnership with Frontera reflects the significant value we have created on the Corentyne license and the opportunity set that is now before us following the discovery of hydrocarbons at the Kawa-1 exploration well [which struck oil earlier this year]. We are focused now on the transformational potential of the Corentyne block ahead of spudding the Wei-1 exploration well in October 2022, pending rig release from the current operator,” said Professor Suresh Narine, Executive Co-Chairman of CGX.

“Frontera is excited to complete this agreement with CGX, and continue our work together on the Corentyne Block,” said Orlando Cabrales, Chief Executive Officer of Frontera. “Building on the Joint Venture’s recent light oil and condensate discovery at the Kawa-1 exploration well, the Agreement supports CGX’s capital needs for the Wei-1 exploration well and provides Frontera with an increased participating interest in the Corentyne block, which is truly one of the most exciting exploration areas in the world.“

Maersk offshore rig for Wei-1 Exploration Well

CGX said that the final preparations were underway in advance of spudding the Joint Venture’s second exploration well, called Wei-1, in October 2022, subject to rig release from a third-party operator. According to available information, the rig is currently operating for Shell in Trinidad & Tobago.

“The necessary long lead materials have been secured and are being mobilized. As of July 15, 2022, 95% of key drilling staff that executed the Kawa-1 exploration well remain contracted for the Wei-1 exploration well. An independent operations readiness review has been completed with no significant obstacles to spud,” CGX said.

The Wei-1 exploration well will be located approximately 14 kilometers northwest of the Kawa-1 exploration well in the Corentyne block, approximately 200 kilometers offshore from Georgetown, Guyana. The Wei-1 exploration wells will be drilled in water depth of approximately 1,912 feet (583 meters) to an anticipated total depth of 20,500 feet (6,248 meters) and will target Campanian and Santonian aged stacked channels in a western channel complex in the northern section of the Corentyne block.

CGX Resources, operator of the Corentyne Block, said it had again contracted Maersk Drilling Maersk Discoverer semi-submersible drilling rig to drill the Wei-1 exploration well, “maintaining continuity in the exploration program during a period of high demand in the region and consistency in working with a team familiar with the rig, which is important from a health and safety, efficiency and operational perspective.”

South America and the Caribbean: The Forming of Strategic Energy Alliances That Can Impact This Decade and the Next

Nations coming together with common interests and approaches to energy is a hallmark of the modern times. Nations in South America and the Caribbean are also joining the trend via strategic energy alliances as disclosed by the presidents of Guyana and Suriname at a recent conference in Suriname, Paramaribo.

July 13, 2022, By Fernando C. Hernandez - Journal of Petroleum Technology
jpt.spe.org/south-america-and-the-caribbean-the-forming-of-strategic-energy-alliances-that-can-impact-this-decade-and-the-next


Guyana's President Irfaan Ali (left) and Suriname's President Chan Santokhi recently spoke of their countries' approach to alliances in the South America and Caribbean region. Fernando C. Hernandez

Nations coming together with common interests and approaches to energy is a hallmark of the modern times: the EU aims to retire its fossil fuel dependency (in principle), and OPEC remains organized with its common focus on oil. However, nations in South America and the Caribbean are also joining the trend via strategic energy alliances as disclosed by the presidents of Guyana and Suriname, Irfaan Ali and Chan Santokhi, respectively. Ali said, “Suriname and Guyana stand on the cusp of major development … [and become] a new force in the world.”

This took place at the Suriname Energy, Oil & Gas Summit (SEOGS) event held 28–30 June in Suriname, Paramaribo, which I attended.

Such alliances would not only change the calculus of energy in the Western hemisphere, but it stands to have reverberations as the global energy map is being restructured, due to the Russian-Ukrainian conflict. The ongoing conflict has left Europe requiring alternate sources of oil and gas, which the South America and the Caribbean region can assist with.

Ali remarked that a strategy map of how a collective regional approach would unfold is to be released in the coming months. Pivotally, Guyana is emerging as a world-class basin for offshore oil output at Starbroek, in Guyana’s deepwater sector. Therefore, Suriname, as Guyana’s southern neighbor which shares similar offshore geology, has a template to follow. Moreover, additional offshore production capabilities were installed in Guyana by ExxonMobil in February.

By 2027, based on additional commitments announced by ExxonMobil, Guyana is poised to surpass 1 million BOPD threshold, placing it in the same realm as UK and US offshore production in a span of just 8 years.

Guyana started producing offshore oil in 2019 from Starbroek. Presently, Block 58—operated by TotalEnergies—which has a total of five discoveries, adjacent to Starbroek, is a catalyst for Suriname that can lead to its rising in a similar fashion to Guyana, as I previously outlined in 2020.

Critically, a deepwater development has not been sanctioned in Suriname, but this can change with Block 58, or a separate offshore development, being approved. It is noteworthy that the presidents of Suriname and Guyana expressed an approach that mirrored that of Equinor’s in Norway: the harnessing of prudent hydrocarbon production while augmenting renewable capabilities in a parallel manner.

The author, Fernando Hernandez (left), pictured with Guyana's President Irfaan Ali at the Suriname Energy, Oil & Gas Summit.Fernando C. Hernandez

The Swinging Energy Pendulum

How would the banding of nations look in South America and the Caribbean? This was outlined by Ali, who categorically expressed that Barbados, Trinidad and Tobago (T&T), with the inclusion of Guyana and Suriname, would protect their collective resources, with an eye toward energy security purposes. North Brazil was equally mentioned as an area to be included in the context of regional cooperation.

Separately, at SEOGS, T&T’s Energy Minister Stuart Young emphatically doubled down on regional banding, while he also expressed T&T’s operational willingness to share its experience in the hydrocarbon sectors with neighboring nations. After all, T&T is the most-experienced in the offshore sector as it pertains to the nations listed above (Brazil being an exception).

In his opening speech, Young referred to an article published in the Journal of Petroleum of Technology and remarked that coal—the most CO2-intensive primary energy—is once more being pursued despite net-zero pledges as an energy-security measure, commenting on the "rhetoric vs. reality" maneuvering that is occurring in Europe. For this reason, he noted that gas, which is the least CO2-intensive primary energy, is a transitional fuel, which echoes Daniel Yergin’s thesis on gas from 2020.

Young evidenced a strategy for the region which aligns with a broader view on energy and sustainability, much like Guyana and Suriname’s presidents (reference the Equinor example above).

It is vital to highlight that as the conference was taking place, Suriname and T&T’s “state-owned energy companies” signed a Memorandum of Understanding (from the sidelines) for cooperation and development amongst them, in which Young directly participated.

Importantly, T&T also has an infrastructure for gas that it can leverage when compared to the other regions mentioned in this article. Guyana is in the process of building out a gas infrastructure to connect its offshore reservoirs to land to utilize for gas-to-power projects, such as electrification to supply to north Brazil, for example. But the creating of LNG infrastructure to export gas or the exporting of ammonia (derived from gas) must also be considered. T&T has operational experience in the aforesaid exports, which can be shared with Guyana under the cooperation and alliance thesis.

Expanding the Equation: Barbados, Granada, and Venezuela

Barbados is presently looking to develop its offshore gas reserves, as its energy minister was also in attendance and spoke in the same session as Young. The two nations have an agreement in place for cooperation for offshore discoveries and developments. Young noted how its infrastructure and LNG capabilities are readily available to be utilized by connecting additional production in the region.

This infrastructure approach is not a new model, as this occurs in the Gulf of Mexico, whereby different offshore operators (including multinational companies) connect their discoveries to existing infrastructure, which is referred to as infrastructure-led growth (ILG). This accelerates reaching first production and reducing capital expenditures.

ILG was previously being pursued by Venezuela and T&T via the offshore gas Dragon project. This would have connected offshore gas production from Venezuela to T&T’s offshore-to-land infrastructure. However, this project was shelved due to US sanctions. Nevertheless, with the US shifting its stance on Venezuela, this can change Dragon’s future trajectory.

Conclusion

South America and the Caribbean are emerging, as Granada and Venezuela are also part of the regional integration equation via T&T. Moreover, Venezuela, via Juan Pablo Pérez Alfonzo, its former Minister of Mines and Hydrocarbons, was instrumental in the forming of OPEC with Middle Eastern counterparts. Today, this regional structure as described above is key to observe as it can develop in a way that differentiates itself from OPEC, or from previous groups based on energy.

However, external regions aligning themselves with this band cannot be entirely ruled out, as Ghana is equally part of the equation, being that Ghana’s energy minister was also present at SEOGS in the same session in which T&T’s Young delivered his opening speech. The region can be expected to be driven by Guyana’s prolific hydrocarbon resources. Suriname mirroring the trajectory of Guyana will bolster the different regional moves that are in play, but this requires the sanctioning of a project in its offshore waters, as Suriname’s oil output on land was approximately 16,000 B/D in 2021, whereas Guyana can produce 120,000 B/D from a single FPSO. This production stands to increase, with an additional FPSO now in-country which can produce up to 220,000 B/D, augmenting the region’s production capabilities.

And now this turd wants to screw over Guyana because Venezuala just wasn't enough...


‘Venezuela aggression against Guyana a threat to entire continent’ – PM tells union

By OilNOW - July 25, 2022
oilnow.gy/featured/venezuela-aggression-against-guyana-a-threat-to-entire-continent-pm-tells-union/

Guyana’s Prime Minister is working to rally support in the region against Venezuela’s claim on its territory.

In his address to the Presidential Forum for the Progress and Integration of South America (PROSUR) Summit, Phillips told the union that the aggression displayed by Venezuela is not just a threat to Guyana, but to the entire South American continent, according to a government release. In this vein, he called for enhanced and consolidated security cooperation strategies as well as a doubling of efforts to ensure that the continent remains a zone of peace.

He said, “We can all agree that the security landscape of our region has become ever more complex and is evolving every day. The region must enhance its efforts to build and consolidate cooperation arrangements on security. We must therefore redouble our efforts to ensure that our region is a Zone of Peace.”

Guyana already has the full support of the Caribbean Community (CARICOM) as it seeks a final resolution from the International Court of Justice, (ICJ) setting its ownership of the Essequibo region. Venezuela’s clamouring for the region became more pronounced when it became evident that offshore acreage in the territory holds a proven bounty of oil and gas reserves.

This year’s PROSUR Summit was held under the theme: “International Cooperation in the Fight against Transnational Organised Crime to Guarantee Regional Security and Stability” in Asunción, Paraguay. The union’s membership includes Argentina, Brazil, Colombia, Ecuador, Guyana, Paraguay and Peru, with Bolivia and Suriname as observers.

Guyana says Venezuela trying to delay World Court ruling in border case | OilNOW

PROSUR was formed as an alternative to the Union of South American Nations (UNASUR), from which most members have withdrawn. Leaders from Colombia and Chile had spearheaded the formation of PROSUR, disavowing UNASUR as ideology-driven, and excluding Venezuela.

Guyana’s Prime Minister represented Guyana as being committed to the cause of combatting transnational organised crime, explaining that this is manifested in its membership in regional and hemispheric organisations, including the Caribbean Community Implementation Agency for Crime and Security (CARICOM IMPACS); the Regional Security System (RSS); International Criminal Police Organisation (INTERPOL) and the Caribbean Regional Drug Law Enforcement Training Centre (REDTRAC).

Is Venezuela’s oil industry returning to its former glory? | OilNOW

“Guyana welcomes this discussion and supports the proposal by the Government of Paraguay to establish a course of action in the fight against transnational organised crime, through the exchange of information among security services and international cooperation in the matter.”

He said too that Guyana also supports the call for the proposal by the Government of Paraguay to determine possible courses of action within the framework of specialised international, hemispheric, and subregional organisations to achieve greater access to cooperation, studies, and training for security services. The official went on to reiterate the calls to reaffirm political commitment at the highest level in the fight against transnational organised crime.

Guyana Looks To Attract New Players In Upcoming Oil Tender

By Charles Kennedy - Jul 26, 2022, 10:00 AM CDT
oilprice.com/Energy/Energy-General/Guyana-Looks-To-Attract-New-Players-In-Upcoming-Oil-Tender.html

Guyana's President Ali hopes that new players in Guyana will add diversification.
Guyana currently produces around 500,000 bpd.
The country aims to lift oil production to 1.2 million bpd by 2027.

Guyana is hoping there will be more companies taking part in its next oil field tender, scheduled for this quarter, as it seeks greater diversification.

"We are hoping that the participants in the auction... will add diversification," Guyana's President, Irfaan Ali, told Reuters in an interview during his visit to the U.S. "There is no blockage against any company."

So far, Guyana's budding oil industry has been dominated by Exxon, which, together with its partners Hess Corp. and China's CNOOC, made a string of more than a dozen discoveries in the Stabroek block offshore Guyana. The total reserves of crude oil tapped so far have been estimated at some 11 billion barrels of oil equivalent.

As a result of these discoveries, Guyana's oil production has been rising steadily, and so has government revenue from it. According to a recent Rystad Energy report, Guyana's government could soon pass the $1-billion threshold in oil revenues, with those reaching as much as $7.5 billion by 2030.

Guyana is currently producing less than half a million barrels of oil daily but has plans to boost this to 1.2 million bpd by 2027. This would make it a bigger producer than Venezuela, Colombia, and Ecuador.

The country is in talks with investment companies from the Middle East, including Saudi Arabia, Qatar, and the UAE, to participate in the development of its oil and gas resources.

Meanwhile, the tiny South American nation has turned into the world's hottest oil discovery spot, with Rystad reporting that since 2015, some 11.2 billion barrels of crude oil equivalent have been discovered in Guyana, representing 18 percent of all the hydrocarbon resources discovered globally in the period and 32 percent of the oil discoveries made globally in the period.

By 2035, the country could be producing 1.7 million bpd, Rystad analysts also said in their report, which would make it the world's fourth-largest offshore oil producer, bigger than Norway, the United States, and Mexico.

By Charles Kennedy for Oilprice.com

And now this...

Guyana oil revenue projections soar to US$157 billion by 2040, Rystad Energy analysis shows

By OilNOW - July 27, 2022
oilnow.gy/featured/guyana-oil-revenue-projections-soar-to-us157-billion-by-2040-rystad-energy-analysis-shows/

The recent spate of prolific discoveries in the Stabroek Block and the steady pace of Final Investment Decisions (FID) is positioning Guyana to reap the rewards of these finds with cumulative revenues totaling US$157 billion by 2040. This is according to independent research consultancy group, Rystad Energy.

In its latest analysis of one of the world’s fastest growing economies, Rystad Energy said its review of the revenue stream to come for Guyana is simply astounding.

Schreiner Parker, Senior Vice President and Head of Latin America and the Caribbean commented that Guyana is just starting to extract and monetise its vast resource wealth, adding that the coming years will be a financial windfall for the Georgetown government. “The country has played the long game after several decades of elusive exploration. But the country’s offshore production is finally ready to take off,” says Parker.

Exxon confirms 1.2 million barrels per day capacity for Guyana by 2027 | OilNOW

While Guyana is poised to enter the proverbial big league this year, Rystad still cautioned that the administration must not lose sight of the fact that managing these overwhelming resources may not be all plain sailing.

The Norwegian group said strong institutional governance, transparency and regulatory practices will be vital to unlocking the full potential of Guyana’s resource wealth for its society.

“Although the government has taken steps to improve governance, including establishing a sovereign wealth fund and improving fiscal policy transparency, there are still improvements to be made,” expressed the group.

As an example, Rystad Energy noted that the Extractives Industries Transparency Initiative (EITI), which champions strong resource management and governance practices, recently found several weaknesses in Guyana’s company reporting and tax processes. However, their EITI score of 52 points will likely grow in the coming years as recent improvements take effect, the business intelligence group stated.

Guyana gets “fairly low overall score” in implementing 2019 EITI Standard | OilNOW

The EITI Board has since determined that Guyana will have until the next validation process commencing on April 1, 2024, to carry out 32 corrective actions to improve its score.

On Tuesday, ExxonMobil announced two more discoveries offshore Guyana, bringing the total oil strikes made since 2015 to 33, according to the Ministry of Natural Resources.

Orinduik partners to submit drilling commitments by end of third quarter

By OilNOW - July 28, 2022
oilnow.gy/featured/orinduik-partners-to-submit-drilling-commitments-by-end-of-third-quarter/

Tullow Oil is preparing to submit drilling commitments to the Government of Guyana for the Orinduik Block.

In a release shared by Orinduik’s 15%-stakeholder, Eco-Atlantic Oil & Gas, Dr. Michael Green of Align Research said progress is being made on the cretaceous drilling target selection in 2022.

“The partners in the block are now entering the next phase of exploration decision making in Q3 2022 as drill commitment is planned to be sent to the government by the end of the quarter,” Dr. Green said.

The analyst discussed, in the release, the two latest discoveries announced by ExxonMobil on Tuesday. Dr. Green said they are on trend with the light oil targets on the southeastern corner.

“Each discovery made in the Stabroek Block is extremely positive and helps Eco better target its next drilling campaign,” the analyst added.

He said, so far, 22 prospects have been identified at Orinduik, with 11 leads in the upper cretaceous horizon.

Two tertiary discoveries were made at Orinduik in 2019 at the Jethro and Joe wells. Eco had said the finds indicated the presence of heavy oil, but were undeterred by the results which were not as the partners had anticipated.

Dr. Green noted that an independent 2020 competent persons report (CPR) had shown that the Best Gross Prospective Resource estimate for Orinduik is 5.1 billion barrels of oil-equivalent, with 771 million barrels net owed to Eco. However, a recent report updated the gross estimate to 8.1 billion barrels, to which Eco is entitled 681 million barrels of oil and 544 billion cubic feet of gas.

The Orinduik Block lies 170 kilometers (km) offshore and covers 1,800 square kilometers (km²). Tullow owns 60% operating interest in the Orinduik Block, while Eco-Atlantic has 15% working interest and TotalEnergies/Qatar Energy JV has 25%.

Guyana will be among the top five elite global offshore producers by 2035 – Rystad Energy

By OilNOW - August 2, 2022
oilnow.gy/featured/guyana-will-be-among-the-top-five-elite-global-offshore-producers-by-2035-rystad-energy/

With ExxonMobil and partners fast-tracking exploration and development projects in Guyana, the country is set to rank in the top five-list of elite global producers by 2035. This is according to Rystad Energy, an independent energy research and business intelligence company headquartered in Norway.

In its recent analysis, Rystad said Guyana was already proving its potential to be a fierce global competitor as it emerged at the top of the leaderboard for most offshore discoveries since 2015 with 11.2 billion barrels of oil equivalent, amounting to 18% of discovered resources and 32% of discovered oil.

Of that total, Rystad Energy said a whopping 9.6 billion barrels consist of oil, far outpacing the United States in second place, with a comparatively small 2.8 billion barrels. It notes that the Stabroek block accounts for all of these finds, but recent discoveries in other areas show the potential for growth elsewhere.

The Norwegian group said Guyana is now forecast to produce 1.7 million barrels per day (bpd) of oil by 2035 – not accounting for as-yet undiscovered volumes – propelling the country to the fourth position on the list of the largest global offshore oil producers. At that pace, the country leapfrogs the US, Mexico and Norway.

Earlier this year, Rystad Energy’s Latin America analyst, Sofia Forestieri, said that Guyana was on track to become the second largest deepwater producer in the world. The only deepwater producer Rystad Energy expects to be above Guyana by then is Brazil, that will be producing close to 5 million barrels of oil per day.

And Guyana’s oil is set to outlast that of many other deepwater producers because of two main factors – quality and cost to produce.

Exxon will have the capacity to produce 1.2 million bpd by 2027 and sees potential for up to 10 floating production, storage and offloading (FPSO) vessels offshore Guyana this decade.

ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) also plans to drill 60 exploration wells over the next six years, pending regulatory approvals.

One bad apple 'doesn't' spoil the whole basket...

Tullow Comes Up Empty In Guyana Offshore Oil Well

By Charles Kennedy - Aug 05, 2022, 1:00 PM CDT
oilprice.com/Latest-Energy-News/World-News/Tullow-Comes-Up-Empty-In-Guyana-Offshore-Oil-Well.html

UK-listed Tullow Oil failed to find oil at yet another well offshore Guyana in what could be its final well drilled in the region where Exxon has found billions of barrels of oil in place.

Tullow Oil plc said on Friday that drilling operations at the Beebei-Potaro exploration well, drilled in the Kanuku license, offshore Guyana, had been completed. The well encountered good quality reservoir in the primary and secondary targets, but both targets were water-bearing, the company said.

Tullow Oil, originally focused on Africa, has seen several failures offshore the Guyana-Suriname basin and is now considering abandoning the area off South America.

“It may be likely that it’s the last well of the Guyana-Suriname basin, or even just from a frontier/high-impact nature” for Tullow, Will Hares, a global energy analyst at Bloomberg Intelligence said on Friday, commenting on Tullow Oil’s latest dismal drilling result.

While Tullow Oil has struggled, U.S. supermajor ExxonMobil has made a string of major discoveries in recent years in Guyana, helping make the country an oil exporter in 2019.

Just last week, Exxon said it had made two more discoveries offshore Guyana, bringing the total discoveries made in the country to 25.

Since the start of the year alone, Exxon has struck oil at seven locations in the Stabroek block off the Guyana coast. The company has more drilling plans for the location, where it is already producing more than 340,000 barrels of crude daily from two floating production, storage, and offloading vessels (FPSO). Exxon and its partners in Guyana—Hess Corp. and CNOOC—plan to expand their oil repertoire by another 220,000 bpd before the end of 2023.

Earlier this year, Exxon approved its fourth offshore project in Guyana, at Yellowtail, which is expected to produce 250,000 barrels per day (bpd) starting in 2025. By 2027, Exxon plans to produce more than 850,000 bpd from Guyana’s offshore fields.

By Charles Kennedy for Oilprice.com