Exxon’s big house on Guyana starts paying off

A.D. After launching exploration in coastal Guyana in 2015, the world’s second-largest oil company, the Excon Mobile, has achieved remarkable success in the market. In less than six years, Exxon has discovered 22 high-quality oil in 6.6 million acres of Stabrock block, most recently at the 5,938-foot Pinktel well 22 miles southeast of Lisa Level 1. Exxon’s partner, Hess, said he had successfully evaluated the discovery of turbo oil at 37 km in the 5,790-foot tube 2 well southeast of Lisa Level 1, a 30% stake in the Stroke block.

Block Stabroek oil discoveries

Source: Hess.

Those recent findings, along with the previous ones in 2021, will strengthen the estimated $ 9 billion barrels already in the Stroke block.

Exxon has announced that it will prioritize investment in coastal Guyana by the end of last year after a very difficult 2020. It is owned by Exxon Bonoza, the operator of the Starbuck block, which is the operator and owner of 45%, as well as partners Hess and CNOOC, which owns 30% and 25%. A.D. By the end of 2020, Exxon’s Lisa Level 1 development has reached full capacity by pouring 120,000 barrels per day. Even in the case of FPSO, the long-term production of gas compressions (April 2021), which caused oil prices to drop from 75% to 30,000 barrels per day, had little effect. By the end of April 2021, production had reached 110,000 barrels per day and production had returned to capacity in May.

Exxon focuses on bringing Lisa Level 2 development online. The LPS Unity FPSO, which will be used for Lisa Level 2, is expected to launch operations from Singapore to Guyana earlier this month in 2022, increasing its production capacity to 220,000 barrels per day. Exxon is also working on the Piara project, which is expected to be operational by 2024, with an additional 220,000 barrels per day to produce the Stroke block. A.D. By 2026, the energy regulator estimates that 750,000 barrels of crude oil will be extracted daily from the block, although that number could be as high as four million barrels since the beginning of 2021.

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The Starbuck block is a very attractive and profitable operation for Exxon and its partners. Lisa Level 1 is breaking even $ 35 per barrel, and oil fields in the Middle East, the lowest in the Middle East, averaged about $ 27 a barrel. Such low-cost stocks make Stroke Block competitive with other South American oil producing states. Suriname and Brazil have devalued prices of about $ 40, with some analysts predicting that they could be as low as $ 35 per barrel. When Exxon partner Lisa Stage 2 in Starbuck Block Hess starts operations in 2022, it believes it will break 25 Brent, if not the lowest price for any oil in Latin America. With the discovery of more crude oil, the necessary infrastructure has been established, and prices are falling sharply, as happened in nearby Brazil.

The quality of crude oil from the Stroke block is due to the rapidly growing popularity of Guyana. Lisa Powder Oil is light and sweet at API gravity at 32 degrees and 0.58% sulfur content. Although Lisa has a temperature of 32 degrees Fahrenheit (32 degrees Fahrenheit), crude oil is relatively low in sulfur, metals and other pollutants, especially compared to Venezuela, Colombia and Ecuadorian standards. As a result, Lisa crude oil is the simplest and cheapest way to make petroleum resources more attractive to exploit in the world economy, with a significant reduction in carbon emissions.

Those significant positive developments have been greatly enhanced by Exxon’s oil sharing agreement with the Guyana and the Guyana National Government in Georgetown. He noted that while there were many speculations that could be made to renegotiate the Guyana agreement, Irfan Ali’s government remained in place. Excon and Stabrock Block are the only power companies operating off the coast of Guyana that have made such a remarkable success. The block is estimated at 9 million barrels of petroleum resources, combined with a number of significant modern discoveries. According to a recent announcement about Pinkkel’s findings, even the most recent drywall has had little effect on Exxon’s performance. For these reasons, Guyana will soon be the driving force behind Exxon’s product and profit growth.

By Matthew Smith to Oilprice.com

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