Aug. 30–Exxon Mobil and Hess Corp. said Thursday they’ve made their ninth oil discovery in the developing offshore fields of Guyana as Exxon continues to bank a chunk of its future in northeastern South America.
The find at the new Hammerhead-1 well represents the ongoing expansion of the emerging oil development off the coast of the Latin American country, which is immediately east of Venezuela, where political and economic instability have led to declining crude production there.
“The Hammerhead-1 discovery reinforces the potential of the Guyana basin, where Exxon Mobil is already maximizing value for all stakeholders through rapid phased developments and accelerated exploration plans,” said Steve Greenlee, Exxon Mobil’s exploration president.
Exxon Mobil, headquartered in Irving, and Hess of New York said they hit oil at a well drilled nearly 14,000 feet at a deepwater depth of almost 3,400 feet. This represents the fifth discovery in the Stabroek Block in the past year.
Exxon Mobil said it estimates that it’s discovered more than 4 billion barrels of recoverable oil equivalent in the region.
Exxon Mobil and Hess, which have partnered in the country, could have up to five floating production, storage and offloading vessels producing more than 750,000 barrels per day by 2025, the companies said.
A second drillship is due to arrive in Guyana in October to accelerate their exploration efforts.
The first development, called Liza Phase 1, is expected to begin producing oil by early 2020, and should churn out 120,000 barrels of oil a day. Construction of that first floating production vessel is already underway.
The Hammerhead-1 is the ninth discovery offshore of Guyana made within the last three years.
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