International energy company ExxonMobil said earlier this week that it has made a new discovery at Whiptail in the Stabroek Block offshore Guyana. The Whiptail-1 well encountered 246 feet (75 metres) of net pay in high-quality oil bearing sandstone reservoirs.

Drilling is also ongoing at the Whiptail-2 well, which has encountered 167 feet (51 metres) of net pay in high-quality oil bearing sandstone reservoirs, it was indicated. The development is the latest for the company which commenced sales of Guyanese oil in 2020.

Mike Cousins, senior vice-president of exploration and new ventures, stated in a company release: “This discovery increases our confidence in the resource size and quality in the south-east area of the Stabroek Block and could form the basis for a future development as we continue to evaluate the best sequence of development opportunities within the block.”

ExxonMobil said it envisioned at least six projects online by 2027 and sees potential for up to 10 projects to develop its current recoverable resource base.

The company’s Liza Destiny floating, production, storage and offloading (FPSO) vessel is currently producing about 120,000 barrels of oil per day.

ExxonMobil indicated that the start-up of Liza Phase 2 remains on target for early 2022, and the Liza Unity FPSO expects to sail from Singapore to Guyana in late August 2021. The Unity has a production capacity of approximately 220,000 barrels of oil per day.

Exxon boasted, “These new projects continue to contribute to the advancement of the Guyanese economy. More than 2,600 Guyanese are now supporting project activities on and offshore, which reflects an increase of more than 20 per cent since the end of 2019. ExxonMobil and its key contractors have spent approximately US$388 million with more than 800 local companies since 2015.

The Stabroek Block, in which the company operates, is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 per cent interest in the Stabroek Block. Hess Guyana Exploration Ltd holds 30 per cent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 per cent interest.