UPDATE 2-Exxon raises Guyana resource estimate after new discovery

(Updates with background on Guyana discoveries, comments from Exxon)

Oct 7 (Reuters) – Exxon Mobil raised by 1 billion oil-equivalent barrels the resource estimate from its Stabroek Block offshore Guyana, which includes a new discovery, as it develops one of the world’s most important oil and gas blocks in the last decade.

The updated estimate of 10 billion oil-equivalent barrels, including that from the new find at the Cataback-1 well, brings total significant discoveries to 21 within the Stabroek Block, the company said on Thursday.

Guyana and neighboring Suriname have become one of the most desired oil exploration hot spots and key to Exxon for increasing its future oil output. Last month, it announced a discovery at Pinktail in the Stabroek Block, without specifying the size of reserves. (https://reut.rs/3uPmBDu)

The oil and gas major operates the 6.6-million-acre Stabroek Block as part of a consortium that includes Hess Corp and China’s CNOOC Ltd.

Exxon’s affiliate is the operator for the block with 45%interest, Hess Guyana Exploration Ltd holds 30% and CNOOC Petroleum Guyana Ltd holds 25%. The consortium began producing crude in late-2019.

Recent discoveries further enhance the development potential of the Stabroek Block, Exxon said further in its statement.

“We continue to see multi-billion barrels of additional exploration potential remaining on the block,” John Hess, Chief Executive Officer of Hess, said in a separate statement.

Guyana had said in August it plans to increase its oil royalties and revamp other contract terms as part of a new profit-sharing agreement (PSA) for future crude and gas projects now in its draft stage. (Reporting by Arunima Kumar in Bengaluru; editing by Uttaresh.V)

Author: Keith Hughes