8 Jan

ExxonMobil’s Guyana Offshore Operation Strikes Oil Again

WRITTEN BY Maitali Ramkumar

ExxonMobil’s Guyana offshore operations

ExxonMobil (XOM) has again discovered oil in offshore Guyana in the Stabroek block. The Ranger-1 well is XOM’s sixth discovery in the block followed by Liza, Payara, Snoek, Liza Deep, and Turbot. The well is northwest of the Liza Phase 1 project.

ExxonMobil’s Guyana Offshore Operation Strikes Oil Again

XOM found oil in the Ranger-1 well at a water depth of 2,735 meters. It has found a 230-foot, high-quality oil reservoir in the well. The Stabroek block is turning out to be a prolific upstream asset for ExxonMobil with a total of six discoveries to date, which are estimated to hold 3.2 billion barrels of oil equivalent of recoverable reserves.

The block is operated by ExxonMobil’s affiliate Esso Exploration and Production Guyana, which has a 45% stake in the block. Hess Guyana Exploration and CNOOC Nexen Petroleum Guyana have 30% and 25% stakes, respectively, in the block.

Word from management

Speaking about the discovery for the Ranger-1 well, Steve Greenlee, ExxonMobil Exploration Company’s president, said, “This latest success operating in Guyana’s significant water depths illustrates our ultra deepwater and carbonate exploration capabilities. This discovery proves a new play concept for the 6.6 million acre Stabroek Block, and adds further value to our growing Guyana portfolio.”

ExxonMobil’s upstream production growth

Production from the Stabroek Block will add to ExxonMobil’s upstream segment, which is expecting a series of projects to start up. The company expects five major projects to begin in 2017 and 2018. These projects are anticipated to add working interest production of 340,000 boepd (barrels of oil equivalent per day). We’ll look at that in detail in the next part.

Series overview

In this series, we’ll analyze ExxonMobil’s (XOM) position so we can understand how prepared it is for 2018. We’ll start by reviewing XOM’s robust upstream and growing downstream portfolios. Then we’ll analyze XOM’s debt position, followed by its cash flow evaluation and segmental analysis. We’ll conclude the series with Wall Street analysts’ ratings for the stock.

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