IRVING, Texas – ExxonMobil has made two new discoveries offshore Guyana to the southeast of the Liza and Payara developments in the Stabroek block. The discoveries at Seabob and Kiru-Kiru are the sixth and seventh in Guyana this year, with the total number of discoveries in Guyana at more than 25.

• Seabob and Kiru-Kiru wells in Stabroek block are sixth and seventh discoveries in 2022
• Guyana investment strategy continues to yield positive results; additional exploration wells planned later this year
• Production from two vessels currently operating offshore has exceeded their initial combined target of 340,000 barrels per day

The Seabob-1 well encountered approximately 131 feet (40 meters) of high-quality hydrocarbon-bearing sandstone and was drilled in 4,660 feet (1,421 meters) of water by the Stena Carron drill ship. The Kiru-Kiru-1 well encountered approximately 98 feet (30 meters) of high-quality hydrocarbon-bearing sandstone and was drilled by the Stena DrillMAX in 5,760 feet (1,756 meters) of water. Drilling operations at Kiru-Kiru are ongoing.

“ExxonMobil and its partners continue to accelerate exploration, development and production activities for the benefit of all stakeholders, including the people of Guyana,” said Liam Mallon, president of ExxonMobil Upstream Company. “The resources we are investing in and discovering offshore Guyana will provide safe, secure energy for global markets for decades to come.”

The company’s 2022 investment plans include further exploration drilling and resource development in Guyana, where it is already increasing production at an accelerated, industry-leading pace. Two floating production storage and offloading (FPSO) vessels operating offshore Guyana — Liza Destiny and Liza Unity — have exceeded their initial combined production target of 340,000 barrels of oil per day.

A third project, Payara, is expected to produce 220,000 barrels per day. Construction on its production vessel, the Prosperity FPSO, is approximately five months ahead of schedule with start-up likely before year-end 2023. The fourth project, Yellowtail, is expected to produce 250,000 barrels per day when the ONE GUYANA FPSO comes online in 2025.

Guyana’s Stabroek block is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the operator and holds 45% interest in the block. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest.

The morning session on Day One of the International Energy Conference Guyana 2023 featured speeches from the former president of Colombia, Mr. Ivan Duque; the Prime Minister of Trinidad and Tobago, the Honourable Dr. Keith Rowley; the president of Suriname, His Excellency Mr. Chandrikapersad Santokhi; the Prime Minister of St. Vincent and the Grenadines, the Honourable Dr. Ralph Gonsalves; and ended with His Excellency Dr. Mohamed Irfaan Ali.

Mr. Duque elaborated on the concept of exploiting the richness of the underground to eradicate the poverty above ground. This concept will generate social and economic technological transitions that Guyana will have to make way for in forthcoming years. He stated that a balance between climate action and energy security should exist to see the development of nations such a Colombia and Guyana, where the potential to develop exists. Duque stated that investment in new technologies, understanding the complexities of new kinds of energy can transform Guyana, once considered. “Guyana has the possibility of using the richness of the underground to close the social divide once used intelligently”, said Duque, and praised the existence of the Low Carbon Development Strategy. Mr. Duque stated that ignoring the opportunity to tap into these energy sources will eventually make this energy very costly for both the country and the Caribbean region.

He commented on the vast amount of land space that can be used in Guyana for the opportunity to house equipment to tap into non-conventional renewables, such as solar panels. Duque also called on the consideration of hydrogen as an energy source, alongside oil and gas in a developed Guyana.

“Indigenous communities can help with nature-based solutions…they exercise effective protection of nature”, said Mr. Duque. Future development plans should involve the communities who know the natural environment so that there is little negative impact.

The possibility of food security was also mentioned, as Guyana can be a supplier of food to CARICOM nations in times of crises when there are high prices and high inflation. Mr. Duque concluded by stating that 2030 should see the Low Carbon Development Strategy as a success once it is taken into effect.

His Excellency Mr. Chandrikapersad Santokhi joined the conference virtually via a prerecorded video. He voiced that solar energy has been key to the modern development of Suriname, and that an existing hydropower plant currently powers about 50% of the country. His speech highlighted many ways in which Suriname and Guyana have similar goals in terms of how energy can develop the nation. Santokhi concluded by stating that his government is committed to harnessing energy for development and committed to fighting climate change with clean energy.

Caricom nation leaders, Prime Ministers Dr. Keith Rowley and Dr. Ralph Gonsalves, of Trinidad & Tobago and St. Vincent & the Grenadines respectively, discussed various statistics related to energy development in the islands, their islands’ developments thus far and what more can be done. There were many agreements with Mr. Duque’s points and the bright future of the Caribbean region once effective strategies are put in place.

His Excellency President Dr. Mohamed Irfaan Ali highlighted climate change, food security, and energy security as the three main challenges that Guyana needs to confront. “Guyana has one of the best environmental credentials in the world”, said the president. He stated that a signed agreement with the United States has been able to catalyze the value of our natural resources. The Low Carbon Development Strategy was said to be an area that the government has enhanced, since the issue of climate change is an area that cannot be ignored. President Ali mentioned that there is an aim to increase the barrels of oil captured per day by over 100 billion. He hopes that Guyana can be self-sufficient in five years and eventually be put in a position to export to neighboring regions. His Excellency mentioned that plans are currently being taken to improve how indigenous communities receive electricity.

Guyana President Dr. Mohamed Irfaan Ali has launched Guyana’s competitive bid round for 14 offshore oil blocks, comprised of eleven shallow water blocks and three ultra-deepwater blocks.

Officially open today, December 9^th 2022, the bid round is expected to be open for 4 months and will close on April 14^th 2023.

With the massive potential for “25 billion barrels”, President Ali outlined that evaluations of the proposals will take place and following an expedited negotiation period, awards of blocks are expected in Q2 2023.

Minister of Natural Resources Vickram Bharrat is expected to publish a notice in the Official Gazette in keeping with the Petroleum Act.

Guyana has seen extraordinary success with offshore discoveries in the last 5 years. The country continues to grow and expand the opportunities to increase production and the inflow of investment into the energy industry and other sectors. The largest upstream player to date has been Exxon, who produces more than 340,000 barrels of oil per day from two FPSOs. The company has had significant success in Guyana and indicates that additional FPSOs are already in development for future projects.

The government has made it clear in the past that the industry must be to the benefit of all Guyanese citizens. At the launch of the bid round, President Ali, stated, “We are hoping that there will be maximum participation and that Guyana would be part of a partnership that creates greater benefit and greater wins for our country and our people.”

Improved fiscal terms have been outlined that provide greater balance of the share of revenue between the government and contractor, while maintaining Guyana’s competitive edge in the region globally.

The International Energy Conference and Expo will take place from February 14-17 2023 at the Guyana Marriott Hotel. At the conference there will be keynote addresses by the leadership of the country including: His Excellency Dr. Mohamed Irfaan Ali, President of Guyana, Prime Minister Mark Anthony Phillips, Vice President, Dr. Bharrat Jagdeo and Minister of Natural Resources, Vickram Bharrat.

At the conference we will also hear from senior experts in Guyana’s oil and gas sector, including John Hess, Chief Executive Officer, Hess and Alistair Routledge, President, ExxonMobil Guyana.