–applies for environmental authorisation
AFTER achieving major success in the Stabroek Block offshore Guyana, ExxonMobil is moving ahead with its plans for a 12-well drilling campaign in the Canje Block.
According to a project summary seen by the Guyana Chronicle, ExxonMobil, through its local subsidiary Esso Exploration and Production Guyana Limited (EEPGL), has applied to the Environmental Protection Agency (EPA) for environmental authorisation to conduct further exploration/appraisal drilling in the Canje Block.
The exact locations of the 12 exploration/appraisal wells comprising the project have not yet been finalised.
“While some of the 12 wells will be drilled for exploration purposes, it is also possible that some of the wells may be drilled as appraisal wells within the proximity of previously drilled exploration areas,” the company says.
The Canje Block is located southeast of the Kaieteur Block, and north-northeast of the Stabroek Block, where EEPGL has conducted substantial exploration and development activities to date.
The Stabroek Block’s recoverable resource base is currently estimated at more than 10 billion oil-equivalent barrels.
It was reported recently that ExxonMobil started production at Guyana’s second offshore oil development on the Stabroek Block, Liza Phase Two, bringing the total production capacity to more than 340,000 barrels per day in only seven years since the country’s first discovery.
According to a release, production at the Liza Unity Floating, Production, Storage and Offloading (FPSO) vessel is expected to reach its target of 220,000 barrels of oil later this year, as operations continue to be brought safely online.
The current resource has the potential to support up to 10 projects. ExxonMobil anticipates that four FPSOs with a capacity of more than 800,000 barrels per day will be in operation on the Stabroek Block by year-end 2025.
Payara, the third project in the Stabroek Block, is expected to produce approximately 220,000 barrels of oil per day, using the Prosperity FPSO vessel, which is currently under construction.
The field development plan and application for environmental authorisation for the Yellowtail project, the fourth project in the block, have been submitted for government and regulatory approval.
Timely development of these additional projects, and continued exploration success offshore will enable the steady advancement of Guyanese capabilities and enhanced economic growth.
ExxonMobil’s plans for the Canje Block, as outlined by the project summary, is aligned with the vision of local authorities.
Speaking further on its plans, EEPGL said: “If discoveries are found at particular locations, subsequent wells could be drilled in the vicinity of such locations to further assess the commerciality of the discoveries. Priorities and schedules could therefore change.”
The company related that it will continue to submit the well information necessary to obtain approval for an Environmental Permit from the EPA prior to the respective spud dates.
It is anticipated that the Canje Block’s 12-well exploration/appraisal drilling campaign will begin in fourth quarter 2022, and if discoveries are made, well test(s) may be performed. Conclusion of the proposed drilling campaign is expected by first quarter 2025.
This schedule is preliminary, and could be influenced by new discoveries, determination of the need for sidetracks, and/or well tests, all of which could extend the drilling period for the project. The same factors could also influence the locations and sequence of subsequent wells.
Well planning also incorporates evaluation and selection of a drill rig, or, in this case, a drill ship. EEPGL currently has six drill ships operating offshore Guyana: The Stena Carron, the Stena DrillMAX, the Noble Bob Douglas, the Noble Tom Madden, the Noble Don Taylor, and the Noble Sam Croft. The wells could be drilled by any one of those six drill ships or other rigs of opportunity, according to EEPGL.