Rolling In The Oil

By NAN Staff Writer

News Americas, NEW YORK, NY, Weds. Jan. 5, 2021: The South American CARICOM country of Guyana is rolling in the oil as ExxonMobil today announced two more oil discoveries.

The new discoveries are in the Stabroek block offshore of Guyana and adds to the previously announced oil estimates for the block of 10 billion oil-equivalent barrels.

“Initial results from the Fangtooth and Lau Lau wells are a positive sign for Guyana and continue to demonstrate the potential for the country’s growing oil and gas sector, ExxonMobil and our co-venturers in the Stabroek block,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil.

ExxonMobil said that the Fangtooth-1 well encountered approximately 164 feet of high-quality oil-bearing sandstone reservoirs. The well was drilled in 6,030 feet of water and is located approximately 11 miles northwest of the Liza field. The Lau Lau-1 well encountered approximately 315 feet of high-quality hydrocarbon-bearing sandstone reservoirs. The well was drilled in 4,793 feet of water and is located approximately 42 miles southeast of the Liza field.

Guyana Natural Resources Minister Vickram Bharrat said the government “remains confident” that these two additional discoveries, which add to the 26 commercially feasible finds, will further strengthen Guyana’s position as a country with world-class discoveries of high-quality hydrocarbon.

The latest find comes as a Guyanese-Diaspora group has added its voice to many expressing dissatisfaction at the passage late last year of the Guyana Natural Resource Fund (NRF) Act without consultation with the parliamentary opposition or other civil society stakeholders.

Executives of the Oil and Gas Governance Network, (OGGN), said it is “extremely disappointed that the Government of Guyana rushed through the passing of the Natural Resource Fund (NRF) Act.

Guyana’s parliament on Dec. 30, 2021, approved local content rules for oil producers and a sovereign wealth fund to oversee the South American nation’s earnings from a budding oil bonanza. Guyana’s President Irfaan Ali has since signed the bill into law.

The bills were part of updates to the country’s regulatory framework for oil exploration and production. The local content bill requires energy projects use local businesses for certain jobs, including environmental studies and metal fabrication.