Could Guyana replace Venezuela as a regional oil giant?

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Guyana is continuing to build its reputation as the new oil hub of the Americas, with more oil firms seeking a stake in the country’s oil fields where it seems new discoveries are being made almost every month as exploration activities continue.

By Oil Price – Felicity Bradstock

Jul 4, 2021

International oil giants Hess (-3.39%), CNOOC, and ExxonMobil (-2.85%) all have a stake in Guyana’s Stabroek Block where the firms have made significant discoveries over the last five years. Exxon alone claims to have made 20 discoveries, expected to contain around nine billion barrels of recoverable oil equivalent resources.

Eco-Atlantic is the latest oil firm to join the major players, acquiring a stake in JHI Associates and taking its share in the Canje block off the coast of Guyana, where Exxon operates.

A 2021 multi-well exploration program will develop upon activities in the Canje Block to see how far the region’s hydrocarbon system extends. The low-risk drilling project could provide greater insight into the extent of Guyana’s oil reserves.

Eco has stated, “This transaction will increase Eco Atlantic’s presence in the Guyana-Suriname basin to include a three-well drilling programme, with the first two firm wells on the Canje Block drilling in 2021 and at least one on the Orinduik Block, subject to partner approval.”

This will develop upon Exxon’s discovery last month at Longtail-3 in the Stabroek Block. The firm found newly identified, high-quality hydrocarbon-bearing reservoirs underneath the original Longtail-1 discovery intervals.

Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil explains, “Longtail-3, combined with our recent discovery at Uaru-2, has the potential to increase our resource estimate within the Stabroek block, demonstrating further growth of this world-class resource and our high-potential development opportunities offshore Guyana.” 

To speed up exploration and evaluation activities this year, in line with the increasing global oil demand, Exxon has launched two additional drillships, Stena DrillMAX and the Noble Sam Croft

Read More: Oil Price – Could Guyana replace Venezuela as a regional oil giant?

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