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…Minister Bharrat says expect transparency in the sector and benefits for Guyanese
With a new discovery at the Cataback-1 well, Stabroek Block offshore Guyana, ExxonMobil has increased its estimate of the discovered recoverable resource for the Block to approximately 10 billion oil-equivalent barrels.
In a statement on Thursday, the Company announced that the new find brings the total significant discoveries within the Stabroek Block to more than 20.
Meanwhile, Minister of Natural Resources, Vickram Bharrat highlighted that Guyana currently has the third-highest oil reserves in the Latin America and Caribbean Region which will bring significant benefits to its people.
He said in a statement: “In transforming the hydrocarbons sector, the Ministry of Natural Resources and the Government of Guyana remain committed to enhancing the exploration and development of Guyana’s oil and gas resources…the oil and gas investments and activities will be undertaken in a manner that is keeping with international best practices for compliance and transparency within the petroleum sector.”
He assured that the Government is working to enhance local content with policies and to ensure maximum economic benefits for all Guyanese.
The Cataback-1 well encountered 243 feet (74 meters) of net pay in high quality hydrocarbon bearing sandstone reservoirs. It is located approximately 3.7 miles (6 kilometers) east of Turbot-1 and was drilled in 5,928 feet (1,807 meters) of water by the Noble Tom Madden.
President of ExxonMobil Guyana, Alistair Routledge said recent discoveries and ongoing projects continue to contribute to the advancement of the Guyanese economy.
“For us, it is very important that the people of Guyana feel the benefit of not just the revenues that are generated from the natural resource but also from the investment activities, the development activities, the work that’s needed to produce the oil and gas,” he said.
Routledge pointed out that since that first discovery in 2015, over US $500 million has been spent with local companies and more than 800 local businesses are involved in the supply chain for the industry.
“These are significant milestones in a very short space of time when you think of the scale of the industry and what it takes to move forward. And remember, we only have one project so far,” he explained.
With the arrival of Unity FPSO later this year and its start-up in the first half of 2022, ExxonMobil Guyana expects to increase the current production capacity within the Stabroek block, realizing even greater benefits for Guyana.
The Liza Unity FPSO has a capacity of approximately 220,000 barrels of oil per day, which will complement the Liza Density FPSO which is currently producing approximately 120,000 barrels of oil per day, bringing Guyana to producing approximately 330,000 barrels of oil per day in 2022.
Routledge added: “What that means of course is that we will almost be tripling the revenue stream to government, which will have more funds to invest whether it is in education, infrastructure and other projects for the benefit of all the people in Guyana.”
He also highlighted the gas-to-energy project as another avenue for significant benefit including the availability of hundreds of jobs during the construction phase.
The Stabroek Block is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the 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.