American oil company Hess Corporation has announced a “significant new oil discovery” at Fangtooth SE-1, one year after the original Fangtooth-1 discovery.
Hess, a joint venture partner in the Stabroek Block, said the Fangtooth SE-1 well encountered approximately 200 feet of oil-bearing sandstone reservoirs, adding to the Stabroek Block’s gross discovered recoverable resource estimate of more than 11 billion barrels of oil equivalent
The company said the recent discovery “has the potential to underpin a future oil development”.
Guyana’s Ministry of Natural Resources said it has noted the information and is currently working with ExxonMobil, which is completing the analysis, to make the information available.
Hess has a 30 per cent stake in the Stabroek Block. Esso Exploration Production Guyana Limited or EEPGL, ExxonMobil’s local subsidiary, is the operator of the block and has a 45 per cent stake. The other partner is China National Offshore Oil Corporation.
Hess has said that it intends to nearly quadruple its spending on projects this year, from US$1 billion to US$3.7 billion, mostly for its Guyana and North Dakota Bakken shale projects. Some US$1.7 billion (46 per cent) is assigned to offshore Guyana developments, with US$1.21 billion being put towards developments on the Stabroek Block at Payara, Yellowtail and Uaru.
EEPGL plans to start production in the Payara Field in late 2023 or early 2024 to add 220,00 barrels per day to output.
CMC
