ExxonMobil announces oil discovery at Whiptail, offshore Guyana

July 28, 2021

IRVING, Texas – ExxonMobil today said it made a discovery at Whiptail in the Stabroek Block offshore Guyana. The Whiptail-1 well encountered 246 feet (75 meters) of net pay in high quality oil bearing sandstone reservoirs. Drilling is also ongoing at the Whiptail-2 well, which has encountered 167 feet (51 meters) of net pay in high quality oil bearing sandstone reservoirs. Drilling continues at both wells to test deeper targets, and results will be evaluated for future development.

News

July 28, 2021

ExxonMobil announces oil discovery at Whiptail, offshore Guyana

• Significant new oil discovery located southeast of Uaru and west of Yellowtail 
• Could form the basis for a future development in the Stabroek Block
• Adds to the previous recoverable resource estimate of approximately 9 billion oil equivalent barrels
• More than 2,600 Guyanese supporting oil and gas activities in country
• The Whiptail discovery is located approximately 4 miles southeast of the Uaru-1 discovery that was announced in January 2020 and approximately 3 miles west of the Yellowtail field. Whiptail-1 is being drilled in 5,889 feet (1,795 meters) of water by the Stena DrillMAX.
• Whiptail-2, which is located 3 miles northeast of Whiptail-1, is currently being drilled in 6,217 feet (1,895 meters) of water by the Noble Don Taylor.

“This discovery increases our confidence in the resource size and quality in the southeast area of the Stabroek Block and could form the basis for a future development as we continue to evaluate the best sequence of development opportunities within the block,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil.

ExxonMobil envisions at least six projects online by 2027 and sees potential for up to 10 projects to develop its current recoverable resource base.

The Liza Destiny floating production storage and offloading (FPSO) vessel is currently producing about 120,000 barrels of oil per day.

The startup of Liza Phase 2 remains on target for early 2022, and the Liza Unity FPSO expects to sail from Singapore to Guyana in late August 2021. The Unity has a production capacity of approximately 220,000 barrels of oil per day.

The hull for the Prosperity FPSO vessel is complete, and topsides construction activities are ongoing in Singapore with a startup target of 2024. The first Payara development well was spudded in June 2021, and the offshore SURF installation will begin in 3Q 2021.

Yellowtail has been identified as the fourth development project in the Stabroek Block offshore Guyana with anticipated startup in 2025. Following necessary government approvals and a final investment decision, this project will develop the Yellowtail and Redtail fields, which are located about 19 miles (30 kilometers) southeast of the Liza developments, and potentially adjacent resources.

These new projects continue to contribute to the advancement of the Guyanese economy. More than 2,600 Guyanese are now supporting project activities on and offshore, which reflects an increase of more than 20 percent since the end of 2019. ExxonMobil and its key contractors have spent approximately US$388 million with more than 800 local companies since 2015.

The Stabroek Block is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 percent interest.

Jabillo-1 disappoints ExxonMobil et al

ECO (ATLANTIC) OIL & GAS LTD.

(“Eco,” “Eco Atlantic,” “Company,” or together with its subsidiaries, the “Group”)

Jabillo-1 Well Result

Sapote-1 well to be drilled next

Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX‐V: EOG), the oil and gas exploration company with licences in the proven oil province of Guyana and highly prospective basins of Namibia, has received a detailed update from JHI Associates Inc.(“JHI”). The Jabillo-1 well in the Canje Block, offshore Guyana, reached its planned target depth and was evaluated but did not show evidence of commercial hydrocarbons. Jabillo-1 will now be plugged and abandoned. This well was drilled at no cost to JHI or Eco and was completed on a full carry basis.

The Jabillo-1 well was drilled to test Upper Cretaceous reservoirs in a stratigraphic trap. The well was positioned offshore Guyana, approximately 265 km northeast of Georgetown, in 2,903 meters of water and was safely drilled to a total depth of 6,475 meters.

The Stena DrillMax Rig is currently operating in the ExxonMobil Operated Stabroek Block and is expected to move on to drill the Sapote-1 well, in the eastern portion of the Canje Block. The Sapote-1 Well is expected to be spud in mid-August 2021 with an estimated drilling time of up to 60 days.

The Sapote-1 prospect is located in the south eastern section of Canje, and is a separate and distinct target from Jabillo. Sapote-1 lies approximately 100 km southeast of Jabillo and approximately 50 km north of the Haimara discovery in the Stabroek Block which encountered ~207 feet (63 meters) of high-quality, gas-condensate bearing sandstone reservoir and approximately 60 km northwest of the Maka Central discovery in Block 58 which encountered ~164 feet (50 meters) of high-quality, oil-bearing sandstone reservoir.

Eco recently acquired a 6.4% interest in JHI with the option to increase its stake to 10% on a fully diluted basis. JHI, a private company incorporated in Canada, holds a 17.5% Working Interest in the Canje Block and was carried on the Jabillo-1 well.

Eco remains well funded to progress its planned Orinduik Block drilling program, subject to partner approval, and now as a result of this recent investment in JHI, it is also fully funded for the ongoing program on Canje Block that includes the upcoming committed Sapote-1 well and any additional potential wells considered for this year.

The Canje Block is operated by ExxonMobil and is held by Working Interests partners Esso Exploration & Production Guyana Limited (35%), with TotalEnergies E&P Guyana B.V. (35%), JHI Associates (BVI) Inc. (17.5%) and Mid-Atlantic Oil & Gas Inc.(12.5%).

Gil Holzman, Co-Founder and Chief Executive Officer of Eco Atlantic, commented:

“While today’s update from JHI is disappointing, this is the nature of oil exploration. Our stakeholders continue to support our exploration efforts and look for us to continue to define these near term high impact opportunities. Our next focus is the Sapote-1 prospect to be spud in the upcoming weeks which brings us another opportunity to share in what we hope to be another major ExxonMobil led discovery. JHI was carried on the Jabillo-1 well and this is just the first in a series of exploration wells that Eco expects to be involved in this year and next. Guyana has proven to be one of the most prolific hydrocarbon regions on the globe and the high discovery ratio continues and the Company continues to be excited about its near-term future prospects on both the Orinduik and the Canje Blocks.

“The next well in the program, Sapote-1, is located adjacent to existing discoveries and it is expected to be spud in mid-August 2021. The targets in the region have proven to hold some hundreds of millions of barrels of oil and oil equivalent and we look forward to similar scaled results from this upcoming well.

“I am happy that we managed to become a part of JHI and the Canje Block exploration program in time that offers our stakeholders a stream of high impact catalysts and an ongoing drilling program operated by ExxonMobil. I have a great confidence that our Canje Block exposure will yield great returns and oil discoveries as it also paves the way to a broader exposure and collaboration in the Guyana-Suriname Basin.”

Please visit www.ecooilandgas.com

Source: Eco Atlantic

Canje Block

28 Jun 2021

Eco (Atlantic) Oil & Gas has closed a transaction with JHI Associates, a private company incorporated in Ontario and headquartered in Toronto, Canada, for Eco to acquire up to a 10% interest in JHI and to appoint Keith Hill, a non-executive Director of Eco, to the JHI Board. The Transaction provides Eco with immediate exposure to a current active drilling program in the Canje Block offshore Guyana. The Canje Block is operated by ExxonMobil and is held by Working Interests partners Esso Exploration & Production Guyana(35%), with Total E&P Guyana (35%), JHI Associates (17.5%) and Mid-Atlantic Oil & Gas Inc. (12.5%).

JHI is a Guyana pure-play deepwater exploration company founded in 2011. In 2014, JHI teamed up with Guyana-based Mid-Atlantic Oil & Gas Inc. (‘MOGI’) which was awarded the Canje Block in 2015. In 2016, ExxonMobil joined the Canje Block as Operator, and in 2018 Total Energies farmed into the Block. Five years of extensive technical and seismic data analysis led to the Canje partners identifying multiple drillable prospects and successfully applying for a multi-well drilling permit. The 2021 multi-well exploration programme on the Canje Block seeks to test the extension of the prolific hydrocarbon system which has resulted in over 9 billion barrels of oil equivalent of recoverable resources being discovered in the adjacent Stabroek Block since 2015.

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. The Jabillo-1 well is currently being drilled on the Canje Block utilizing the Stena Carron drillship with results expected in July. The Sapote-1 well is scheduled to be drilled later this year in Q3 by the Stena DrillMax in the eastern portion of the Canje Block, which Eco will also have exposure to through its now shareholding in JHI.

Highlights of the Transaction

• Exploration: near-term exposure to low risk, high impact two-well drilling programme in Canje Block offshore Guyana led by ExxonMobil.
• Funded: from existing cash and an expected private placement of shares to Africa Oil and Charlestown Energy, leaving Eco with strong cash reserves for future exploration wells on Orinduik.
• Board representation: Eco Atlantic Board member Keith Hill will join the JHI Board as Eco’s nominee with immediate effect.
• Future Collaboration: the transaction allows both Eco and JHI the opportunity for future cooperation in their shared focus exploring for hydrocarbons on the highly prospective Guyana-Suriname basin.

Terms of the Transaction

Eco has subscribed for 5,000,000 new common shares in JHI at a price of US$2.0 per share, representing 6.4% of JHI’s enlarged share capital (the ‘JHI Investment’), and has been issued a warrant to subscribe for a further 9,155,471 new common shares in JHI at an exercise price of US$2.0 per share for a period of eighteen months (the ‘JHI Warrant’). If the JHI Warrant is exercised in full, Eco will hold an interest, ceteris paribus, of 10% in JHI on a fully diluted basis.

As at 31 December 2020, JHI had net assets of approx. US$46.3 million and recorded a net loss of approx. US$8.28 million.

The two well drilling program currently underway on the Canje Block offers Eco near-term, low-risk exploration drilling catalysts with significant upside. JHI is carried on the costs for the drilling of the first well, Jabillo-1 and would also be carried for an offsetting appraisal well in the case of a discovery on Jabillo-1. The Canje Block partners have also committed to drill the Sapote-1 well later this year in Q3 2021.

Led by ExxonMobil as Operator and technical lead, the wells offer an opportunity to participate in an anticipated extension of the Stabroek Block Oil Discovery trend building on the over 9 billion BOE barrels equivalent offshore Guyana already discovered.

Eco Atlantic funded the JHI Investment through its own cash reserves, and intends to complete an associated private placement with its strategic partner Africa Oil Corp and with Charlestown Energy Partners, a Private Equity firm based in New York, USA (the ‘Proposed Subscription’), to raise additional funds of approx. 6.1m CAD (US$4.9m). Pursuant to the Proposed Subscription, Africa Oil intends to subscribe for 5,945,913 new common shares in Eco at a price of 0.41 CAD per new common share and will be granted the same number of warrants to acquire common shares at the Subscription Price with a two-year duration, and Charlestown Energy intends to subscribe for 9,000,000 new common shares at the Subscription Price and will be issued the same number of warrants on equivalent terms. The Proposed Subscription will be conditional on approval by the TSX Venture Exchange and admission of the Subscription Shares to trading on TSX and on AIM.

Gil Holzman, Co-Founder and Chief Executive Officer of Eco Atlantic, commented:

‘After a period of thorough technical analysis of the Canje block, by both our team at Eco and our strategic partners at Africa Oil Corp we are delighted to advise the market on this exciting transaction, and to be back drilling with results expected imminently.

‘The carried Jabillo-1 well is underway and is expected to reach target in the coming few weeks, providing our shareholders with high impact near term catalysts.

‘I want to thank the teams at Eco, Africa Oil and JHI for their hard work and collaboration over the past months in bringing this deal to execution.

‘While we eagerly anticipate resuming drilling activity on our Orinduik block next year, pending partner approvals, and we have made sure to preserve sufficient funding for that, we are very excited that we now have two imminent Guyana wells in our portfolio as well as additional multiple prospects inventory on the Canje Block. Since 2014, Eco has strongly focused on the hydrocarbon potential offshore Guyana, and this strategic deal with JHI marks the beginning of a wider presence and potential increased future collaboration in the basin.’

Keith Hill, Non-Executive Director of Eco Atlantic and President and CEO of Africa Oil, further commented:

‘We are very pleased to have Eco team up with the two most knowledgeable operating partners in the basin and believe the Canje Block has the potential to hold resources comparable to the world class Stabroek Block which is undoubtedly the most successful exploration campaign in recent history. Combining this with the holdings in the Orinduik Block, Eco is well positioned to be part of the historic oil development in Offshore Guyana.’

Source: Eco (Atlantic)

Eco Atlantic adds stake in Canje

Eco (Atlantic) Oil & Gas acquires minority interest at Canje block

28 June 2021
By Fabio Palmigiani in Rio de Janeiro

UK- and Canada-listed independent Eco (Atlantic) Oil & Gas has increased its strategic positioning in Guyana with the acquisition of a minority stake in a promising offshore tract.

Saipem

Matthew V. Veazey|Rigzone Staff|Jun08, 2021

Saipem to Fabricate Subsea Equipment in Guyana

Saipem inaugurated a new offshore construction facility in Georgetown Port, Guyana. Saipem Guyana Offshore Construction Facility will boast the country’s largest heavy lift crane, a heavy load-bearing jetty, and specialized fabrication, welding, and testing equipment. Saipem said all construction work for the new facility was awarded to Guyanese contractors.  The new offshore construction facility will enjoy direct access to the Demerara River, which will allow fabricated items to be loaded onto vessels for deliveries offshore.

Saipem noted that has it has won contracts for ExxonMobil (NYSE: XOM)-operated field development projects offshore Guyana, starting with Liza Phase 1 in 2017 and Liza Phase 2 in 2018. Saipem recently began work on the final phase of the ExxonMobil-led Payara development. The new facility will enable Saipem to fabricate jumpers and other sophisticated subsea structures locally,.As a result, the firm will boost ongoing training efforts for local workers by including new specializations in conjunction with recognized Guyanese organizations, schools, and service providers.

“The inauguration of Saipem’s Offshore Construction Facility in Guyana will enable us to provide highly skilled local services and support to the advantage of current and future energy projects in the country,” commented Saipem America President and CEO Giorgio Martelli. “Saipem’s commitment in Guyana is long-term and this new facility is a key milestone in our relationship with this dynamic nation.”

 

India

Top refiner buys its first Guyanese oil

NEW DELHI, June 30 (Reuters) –

Indian Oil Corp the country’s top refiner, made its first purchase of Liza light sweet crude as it seeks to diversify its crude purchases. Greece-flagged tanker Militos with the 1 million-barrel ‘trial cargo’ set sail from Guyana on historic July 4 for India’s Paradip Port, where it is due to arrive around August 8, according to Refinitiv data.

India is in talks with the Guyana government for a term oil supply contract for state refiners.

Greek-flagged Militos IOC is the first Indian state refiner to buy Liza oil. Private refiner HPCL-Mittal Energy Ltd, a joint venture between state-run Hindustan Petroleum Corp and steel tycoon L.N. Mittal, bought a million barrels of Liza grade in March. The world’s third biggest oil importer and consumer,
India ships in more than 80% of its oil needs from overseas and relies heavily on the Middle East.

Earlier this year India asked state refiners to expedite diversification of crude sources after the Organization of Petroleum Exporting Countries and its allies, OPEC+ (NOPEC) failed to ease supply curbs, leading to a spike in global oil prices.

State refiners – IOC, HPCL, Bharat Petroleum and Mangalore Refinery and Petrochemicals Ltd– together control about three-fifths of India’s 5 million barrel per day refining capacity.

With tax-heavy retail prices of gasoline and gasoil jumping to a record high, Oil Minister Dharmendra Pradhan has again requested OPEC+ ahead of the group’s July 1 meeting, to consider easing supply curbs to enable demand-led recovery and to calm inflation.

Report by Nidhi Verma; Editing Kirsten Donovan

IOC buys oil from Guyana

NEW DELHI: India’s top state refiner IOC made its first purchase of crude oil from Guyana and entered into a term contract to buy US crude as it seeks to diversify its oil imports. Indian Oil Corporation (IOC) chairman Shrikant M Vaidya said,

He said IOC is the first Indian state refiner to procure Guyanese crude which the firm is bringing to its Paradip refinery in Odisha.    (PSU, = Public Sector Undertaking)

“IndianOil becomes the first Indian PSU refiner to procure Guyanese crude as part of our continuous efforts to diversify the crude basket,” he said.

In March, HPCL-Mittal Energy Ltd, a joint venture between Hindustan Petroleum Corporation Ltd and steel tycoon L.N. Mittal, bought a million barrels of Liza grade.

Tapping nations such as Guyana is part of the strategy to diversify crude sources after the . Organization of Petroleum Exporting Countries (OPEC) and its allies, OPEC+, in March ignored calls to ease supply curbs, leading to a spike in global oil prices. India imports about 85 per cent of its oil needs. Traditionally, Middle East nations such as Saudi Arabia and Iraq have been its principal suppliers.

Guyana’s production is set to rise to 800,000 barrels per day over the next four years. IOC may buy more Liza crude if the economics work.  The High Commission said the procurement is a reflection of enhanced bilateral cooperation between India and Guyana.

Collaboration could potentially expand to include India acquiring oil blocks, long-term agreement for sourcing crude from Guyana as well as training and capacity building in oil and gas sectors.

Guyana’s Liza oil, a light sweet crude, is well suited to Indian refineries. India considered such purchase arrangements helpful to both sides as the governments are able to save on incurring costs on commission and marketing fees to third-party agencies.

Read more at:
https://economictimes.indiatimes.com/markets/companies/ioc-buys-oil-from-guyana-signs-up-term-pact-for-us-crude/articleshow/84071492.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 

Guyana crude ease India’s OPEC plight

Stabroek News July 9,

Indian Altruism

29 June 2021

India continues altruistic activities in the West Indies, named after the subcontinent. providing scholarships in arts and technology to share its national knowledge, valued by CARICOM citizens. The High Commission of India announced that it has for the first time offered the single largest number of military courses to soldiers lasting from three to six months during 2021 to 2022.

“The total number of 19 scholarships for military training is the first ever by India in such a large number by India for Guyana. That is the intent of the release. Earlier trainings were done with no consecutive recurrence. This time shows India’s commitment to Guyana’s growing requirements at a larger scale under the ITEC program,” the High Commission said.

The diplomatic mission in Guyana announced that the first recipient of a scholarship under Naval Course, Lieutenant Coast Guard Derrick Johnson is likely to leave for India soon for the Long N Course at ND School, Kochi, Kerala in July 2021. 19 defence training slots would include 10 army courses, four naval courses and five air force courses.

Under the Indian Technical and Economic Cooperation (ITEC) programme, India covers all expenses related to this training and provides the return air ticket, accommodation charges, tuition fee, living expenses, medical expenses, external and internal tours for the courses.

Until 2020, India normally offered 50 training slots annually to Guyana for skill development and capacity building through various courses of the ITEC programme. Over 650 Guyanese scholars, who had already received training under ITEC Programme, are contributing effectively to Guyana so far.

“India extends defence cooperation to a number of countries where the armed forces work together to achieve mutual aims and objectives, to assist them to strengthen their institutions in relation to security, to strengthen security systems in the context of continued threats of territorial incursion and terrorism, to provide training in various military skills, including combat, marksmanship, emergency medical evacuation, search-and-rescue and recovery responses, etc;” the High Commission said.

In May-June this year, India provided training to 25 media professionals from Guyana under ITEC. Due to COVID-19 pandemic, multiple e-ITEC online courses held in 2020-21, benefitted over 10 Guyanese participants.

Indian Council for Cultural Relations (ICCR) every year offers nine fully paid scholarships for studies in prominent Indian Institutions for Undergraduate, Postgraduate and PhD courses.

ICCR provides two fully paid scholarships in Music, Dance, performing art, theatre, sculpture, Indian Cuisine etc. and two slots to study Hindi in India .

 

Spud window set for new exploration well offshore

July 12, 2021, by Nermina Kulovic

CGX Energy has established a spud window for its first exploration well offshore Guyana, which will be drilled using a Maersk Drilling rig.

Offshore JV Sets August Spud Window

Matthew V. Veazey|Rigzone Staff| July 15, 2021

Frontera Energy Corp. reported drilling for the Kawa-1 well on the Corentyne block offshore is expected to start between August 1-15.

Located in the northeast quadrant of the Corentyne block approximately 124 miles (200 kilometers) from Georgetown, Guyana, Kawa-1 lies in approximately 1,174 feet (355 meters) of water and is expected to reach total depth of 21,700 feet (6,575 meters) in roughly 85 days. The firm holds a minority stake in the joint venture with operator and majority owner CGX Resources Inc.

CGX contracted the Maersk Discoverer semi-submersible rig for the exploration well – the first offshore Guyana contract for Maersk Drilling . Maersk Discoverer is currently working offshore Trinidad for another operator.

Frontera CEO Orlando Cabrales remarked, “There has been excellent progress by CGX to advance the substantial exploration opportunities in one of the world’s leading offshore basins. With the Kawa-1 spud window established, drilling and support contracts secured, and operational activities underway, I look forward to safely and efficiently improving our understanding of the potential of the Corentyne block over the coming months.”

CGX stated the current cost estimate to drill and evaluate Kawa-1 ranges from approximately US$80-$85 million. Gabriel de Alba, CGX co-chairman said,

“We are pleased to continue to advance our activities in what we believe is one of the world’s most important new oil and gas blocks in the last decade. The CGX team has worked tirelessly to reach this point in coordination with all our stakeholders. We look forward to providing further details as soon as possible.”

email mveazey@rigzone.com.

University subsea center

June 29, 2021, Nadja Skopljak

The University of Guyana and the Caribbean Oceanography Aquaculture and Subsea Technology (COAST) Foundation signed a memorandum of understanding (MOU) to establish a subsea training facility. The center, the first of its kind at a university in the region, will deliver programs designed to prepare students for careers in subsea operations and engineering.

It will feature the first remotely operated vehicle simulator in the region, an ROV test tank, an electrical workshop, and a hydraulic-mechanical workshop

Leading the project, Keith Lewis, said,

“COAST Foundation believes that there is a future for local students to become engineers in the subsea field and support the deepwater development in Guyana. All of the development, past, and future in Guyana will be via remotely operated vehicles (ROVs), therefore we want to ensure that we train local technicians and subsea engineers to support the process.”

A key component of the program will be a collaboration with the local and international subsea industry companies to ensure stakeholder buy-in and a sustainable holistic approach to the transfer of technology to Guyana.

ECO donated publications, rock collections and other materials to regional universities, UG, UWI and UTT to build capacity in petroleum technology and graduates contribute to the industry at all levels.

GCCI, UG in Industry-Academia Collaboration

by Georgetown Chamber of Commerce
June 29, 2021 –

The Georgetown Chamber of Commerceand Industry (GCCI) signed a Memorandum of Understanding (MoU) with the University of Guyana (UG) at the Turkeyen Campus. with the aim of bridging the gap between industry and academia. GCCI President, Timothy Tucker, and Vice-Chancellor Dr. Paloma Mohamed-Martin signed the MoU on behalf of their respective organizations.

Under the long-term academic collaboration agreement, the GCCI and the University will cooperate in the areas of education, training, and research. The University will work closely with the GCCI to provide and maintain a database of students seeking employment in the private sector, develop relevant programs that align with industry needs and requirements, offer professional training to GCCI members and provide research assistance through the involvement of its student and faculty.

In return, the GCCI will work with its membership to provide internships and training opportunities, secure sponsorship and scholarship opportunities for students, facilitate research, and participate in guest lecturers and other professional activities aimed at imparting industry knowledge and skills. Under the agreement, the GCCI will also serve on the Advisory Board of the School of Entrepreneurship and Business Innovation (SEBI).

The GCCI notes the importance of its partnership with the University of Guyana as a step towards bridging skills gaps in the workplace and strengthening Guyana’s competitiveness in a rapidly changing world. The GCCI looks forward to working closely with the University of Guyana to prepare a skilled workforce and further promote innovation and entrepreneurship among Guyanese youth.

 

Finance for Payara FPSO

SBM Offshore secured $1.05 billion in financing for the FPSO Prosperity that will operate at the Payara field development offshore Guyana.

Jun 25th, 2021

The FPSO Prosperity is based on SBM Offshore’s Fast4Ward program of a newbuild, multi-purpose hull combined with standardized topsides modules.

AMSTERDAM – SBM Offshore has secured $1.05 billion in financing for the FPSO Prosperity that will operate at the Payara field development offshore Guyana.

The project financing was secured by a consortium of 11 international banks. The company expects to draw the loan in full, phased over the construction period of the FPSO. The financing will become non-recourse once the FPSO is completed and the pre-completion guarantee has been released. The project loan has a tenor of two years post completion, in line with the duration of the charter, and carries a variable interest rate plus 1.60%.

The Prosperity will use a design that largely replicates the design of the FPSO Liza Unity. The design is based on SBM’s Fast4Ward program that incorporates the company’s newbuild, multi-purpose hull combined with several standardized topsides modules.

The FPSO Prosperity will be designed to produce 220,000 b/d of oil, have associated gas treatment capacity of 400 MMcf/d, and water injection capacity of 250,000 b/d. The FPSO will be spread moored in water depth of about 1,900 m (6,234 ft) and will be able to store around 2 MMbbl of crude oil.

The Payara project is the third development in the Stabroek block, circa 200 km (124 mi) offshore Guyana. ExxonMobil Corp. affiliate Esso Exploration and Production Guyana Ltd. is the operator and holds a 45% interest in the Stabroek block. Hess Guyana Exploration Ltd. holds a 30% interest, and CNOOC Petroleum Guyana Ltd. holds a 25% interest.

First oil is targeted for 2024.

Odassea chosen for Payara, OTC award
ExxonMobil has contracted TechnipFMC and Halliburton to supply their Odassea subsea downhole fiber optic sensing system for the Payara project offshore Guyana.

Jul 8th, 2021

HOUSTON – ExxonMobil has contracted TechnipFMC and Halliburton to supply their Odassea subsea downhole fiber optic sensing system for the Payara project in the Stabroek block offshore Guyana.

This follows the completion of front-end engineering and design studies and qualifications. The system has also been selected for an OTC Spotlight on New Technology award.

Trey Clark, vice president of Halliburton Wireline and Perforating, said: “By collaborating with TechnipFMC, we combine our sensing and subsea expertise to enhance reservoir insight and to lower the total cost of ownership for our customers.”

Odassea is said to integrate hardware and digital systems to improve subsea reservoir monitoring and production optimization. Halliburton is responsible for the fiber optic sensing technology and analysis for reservoir diagnostics, while TechnipFMC provides the optical connectivity from the topsides to the completions.

The overall service is said to allow operators to speed up full-field subsea fiber optic sensing, design, and execution.

Payara, 200 km (124 mi) offshore Guyana in 1,800 m (5,905 ft) of water, is the third development on the Stabroek block.

TechnipFMC and Halliburton are delivering Odassea solutions to various other subsea projects, from conceptual design to execution.

07/08/2021

Exxon US$900M Gas-to-Energy Project

Jun 26, 2021

28 days to determine topics included in EIA

Esso Exploration and Production Guyana Limited (EEPGL) submitted an application to the Environmental Protection Agency (EPA) to proceed with its US$900M Gas-to-Energy Project.

The Project

A notice by the EPA states the project is expected to include the construction, commissioning and operation of:
1. An Onshore Natural Gas Liquids and Natural Gas Processing Plant (NGL Plant) proposed to be located at the Amsterdam (Demerara River)/Vriesland Area, West Bank Demerara; `

2. An Offshore 12-inch pipeline (approximately 220km long) from the Liza Phase One and Liza Phase Two Floating, Production, Storage and Offloading (FPSO) vessels situated within the Stabroek Block, Offshore Guyana to La Jalousie/Nouvelle Flanders, West Coast Demerara;

3. An Onshore 12-inch pipeline (approximately 27km long) commencing North from the proposed NGL Plant Site, then West and North again towards Canal No.2, where it turns West travelling along the Canal, before proceeding North across Canal No. 2, through agricultural fields, an additional smaller canal, Canal No.1 and residences of Canal No.1, and additional agricultural fields to a point West of La Parfaite Harmonie, Westminister and Onderneeming. The route then moves East through agricultural fields and across the West Coast Demerara Highway at a point West of Vreed-en-Hoop/Crane, and northward through agricultural fields, and across a road and a pair of canals until reaching the seawall; and
4. A temporary Materials Offloading Facility (MOF) at Amsterdam/Vriesland on the West Bank of the Demerara River, inclusive of other support works such as associated dredging, in-water construction activities, road construction, road improvements and post-construction restorative works around the entire proposed project area.

As a result of the intended developmental activities, the EPA said possible effects on the environment may include impacts to marine water quality, air quality, marine and terrestrial flora and fauna, socio-economic resources, among others.

In keeping with the Environmental Protection Act, Cap. 20:05, the EPA has determined that the proposed project may significantly affect the environment and therefore will require an Environmental Impact Assessment (EIA).
The EIA will include but not be limited to all possible alternatives studied, effects on the environment, and assessment of risks, and may lead to further optimisation of the proposed project.

Members of the public are hereby invited, within twenty-eight (28) days of this Notice, to make written submissions to the Agency, setting out those questions and matters, which they require to be answered or considered in the EIA.
A summary of the project can be viewed on the EPA website or uplifted at the EPA’ Offices in Linden (Region 10), Whim (Region 6) or Sophia, Georgetown.

THE PROJECT
The Gas-to-Energy Project which includes the construction and operation of a pipeline from the Liza Phase 1 and Liza Phase 2 Floating, Production, Storage, and Offloading (FPSO) vessels will transport up to approximately 50 million standard cubic feet per day (MSCFD) of dry gas to an onshore natural gas liquids (NGL) and natural gas processing plant (NGL Plant).

The NGL Plant will drop the pressure of the gas, dehydrate it, separate out propane, butane and pentanes+, and treat the gas to the specification to be received by a planned power plant.
The power plant will be owned and operated by the Government of Guyana. The Government will also consider alternative options on ownership.
The entire project is expected to cost US$900M.

 

PGS secures 4D contract offshore

28 Jun 2021

PGS has been awarded a significant 4D acquisition contract by ExxonMobil for work offshore Guyana. A Titan class vessel is scheduled to mobilize for the project in Q4 2021 and acquisition is planned to be completed in Q1 2022.

‘We acquired the 4D baseline of this area and consider it strategically important for us to be awarded a repeat survey for parts of the initial program. We are very pleased with the recognition of our Ramform acquisition platform and superior multi-sensor GeoStreamer technology, which are well suited for high quality 4D acquisition programs . The contract adds further visibility to our order book for the coming winter season,’ says President & CEO in PGS, Rune Olav Pedersen.

Source: PGS

Orinduik block

Offshore Guyana partners progressing studies for next drilling targets

June 18th, 2021

TORONTO – Eco (Atlantic) Oil & Gas has issued an update on exploration of the Orinduik block offshore Guyana, led by operator Tullow Oil.

The partners, which also include the TotalEnergies/Qatar Petroleum joint venture, TOQAP Guyana, are looking to select their next drilling targets this summer, following completion of seismic reprocessing.

Drilling could then resume in 2022.

Samples from the Joe and Jethro discovery wells, both of which encountered biodegraded heavy oil in the lower Tertiary, have undergone further geochemical analysis.

In parallel, mapping of thermal maturation and additional basin modeling has improved understanding of this Tertiary section in the northern quadrant of the block and into the neighboring three Hammerhead discoveries in the Stabroek block.

Repsol’s 27°API light oil in the Carapa well, drilled updip and inboard of Orinduik and within the Cretaceous section, has also been reviewed.

Detailed mapping continues of the depositional channel systems through the basin, supported by data from each new well drilled regionally, and from prior logs.

Reprocessing has sharpened identification of the reservoirs and traps created by the slope channel systems, terraces, and resultant ponding.

Finally, the partners have completed studies of depo-systems to map hydrocarbon travel updip onto the Orinduik terraces from the same source rock feeding the reservoirs within Stabroek.

Hess

Company leadership sees as many as 10 FPSOs in operation by decade’s end

23 June 2021
By Mark Passwaters in Houston

Hess continues to see its partnership with ExxonMobil off the coast of Guyana as a tremendous money-maker. Company officials described major oil opportunities offshore.