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Monday Saints of this Day April 24 Octavo Kaléndas Maii

997 Adalbert of Prague bishop composition of Czech and Polish hymns preaching Poland Prussia Hungary Russia missionaries martyred there
303 St. George soldier Diocletian martyred Patron of England & Catalonia

The answers to many of life's questions can be found by reading the Lives of the Saints They teach us how to overcome obstacles and difficulties, how to stand firm in our faith, and how to struggle against evil and emerge victorious

Uncle Arnie Arnold Charles Elchlepp; At Guadalcanal 1942
1st Lt B24 Liberator Pilot in Italy, over Europe 1943 and 1944 33 missions; Our Family in WWII; Medals

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Subsea Tree Contracts
The South American market is seeing rising numbers of subsea tree contracts awarded, a trend expected to continue over the medium term. While the region saw an average of only 54 subsea trees awarded per year between 2018 and 2021 numbers are expected to jump to an average of 74 subsea trees per year between 2022 and 2025.

In August Technip FMC was awarded a contract by Exxon Mobil affiliate Esso Exploration and Production Guyana for the Gas to Energy Protect to provide EPCI of subsea risers and pipelines.

Guyana emerged as a burgeoning market for subsea players in 2017 when Exxon Mobil ordered 17 subsea trees for its Liza Phase I development, the nation’s first offshore project.
Since then exploration success at the prolific Stabroek Block led Exxon Mobil to commission 131 subsea trees for its Liza Phase 1, Liza Phase 2, Payara and Yellowtail projects—all of them were won byTechnip FMC in 2017, 2018, 2020 and 2022, respectively.

The US major has several significant discoveries lined up to be developed that will require a total of 210 subsea trees to be awarded through to 2030—a number that could increase if the operator hits further success in exploration.

ExxonMobil two new discoveries on the Stabroek Block offshore Guyana.

Wednesday, October 26, 2022
ExxonMobil has made two new discoveries at the Yarrow-1 and Sailfin-1 wells on the Stabroek Block offshore Guyana. The discoveries, which are the eighth and ninth this year, will add to the block’s previously announced gross discovered recoverable resource estimate of approximately 11 billion barrels of oil equivalent. Since 2015, ExxonMobil has made more than 30 discoveries on the block.

The Yarrow-1 well encountered approximately 75 feet (23 meters) of high quality oil bearing sandstone reservoirs. The well was drilled in 3,560 feet (1,085 meters) of water and is located approximately 9 miles (14 kilometers) southeast of the Barreleye-1 discovery.

The Sailfin-1 well encountered approximately 312 feet (95 meters) of hydrocarbon-bearing sandstone and was drilled in 4,616 feet (1,407 meters) of water. The Yarrow-1 well encountered approximately 75 feet (23 meters) of hydrocarbon-bearing sandstone and was drilled in 3,560 feet (1,085 meters) of water.

Both wells were drilled by the Stena Carron drillship.

Our unrivaled exploration success and accelerated pace of development in Guyana are a testament to our people, decades of experience, technology capabilities and steadfast focus on optimizing all aspects of operations,” said Liam Mallon, president of ExxonMobil Upstream Company. “We are committed to responsibly and safely developing this world-class resource to help meet global demand for secure, reliable and lower-emission energy. Our investments through the pandemic have allowed us to increase supply at this critical time, while creating value for the people of Guyana, our partners and shareholders.”

The Banjo-1 exploration well was drilled earlier in the third quarter and did not encounter commercial quantities of hydrocarbons.

“We are excited to announce two more discoveries on the Stabroek Block, bringing our total this year to nine,” John Hess, CEO of Exxon's partner Hess Corp. said. "These discoveries will add to the discovered recoverable resource estimate for the block of approximately 11 billion barrels of oil equivalent, and we expect to be producing more than 1 million gross barrels of oil per day in 2027.”

ExxonMobil said its first two sanctioned offshore Guyana projects, Liza Phase 1 and Liza Phase 2, are now producing above design capacity and achieved an average of nearly 360,000 barrels of oil per day in the third quarter.
A third project, Payara, is expected to start-up by the end of 2023, and a fourth project, Yellowtail, is expected to start-up in 2025. ExxonMobil is currently pursuing environmental authorization for a fifth project, Uaru.

According to Hess, Plan of Development is expected to be submitted to the Government of Guyana before year end for the Uaru project. The Uaru project is expected to come online at the end of 2026 with a gross production capacity of approximately 250,000 barrels of oil per day.

The two new oil discoveries - Seabob and Kiru-Kiru - take the total number of discoveries to more than 30.

Exxon Mobil Corp said on Tuesday it has made two new oil discoveries offshore Guyana and that it has already exceeded its original year-end daily production target for the South American country.

The announcements are part of Exxon's efforts to accelerate production in Guyana and to invest in long-term megaprojects that offer lower costs and lower carbon emissions per barrel. A group led by Exxon started production in the tiny nation of 750,000 people in 2019 and currently controls all output in Guyana. "Exxon and its partners continue to accelerate exploration, development and production activities for the benefit of all stakeholders, including the people of Guyana," Liam Mallon, head of Exxon's upstream company said in a statement.

The U.S. major said it is already producing more than the 340,000 barrels of oil equivalent per day (boepd) target it had originally set for itself by the end of 2022 in Guyana. Exxon's partner Hess said in a follow up statement the group's current production has reached 360,000 boepd. The increase was possible after optimization works that expanded capacity of the consortium's first platform Liza Destiny by 20,000 boepd to 140,000 boepd, Hess said.

The second platform, Liza Unity, started in February and ramped-up to 220,000 boepd in five months.

Guyana amounts for one third of the crude discovered in the world since Exxon first hit oil in the country in 2015, according to Rystad consultancy firm. The about 11 billion barrels of recoverable oil discovered to date should make the country a global oil power in the coming years, Rystad says.

Exxon has announced an average of one discovery per month this year.

Offshore staff 4/4/2022 IRVING and HOUSTON, Texas
– Several online reports indicate that Exxon Mobil has sanctioned its Yellowtail project offshore Guyana, and partner Hess Corp. has confirmed it in an official announcement. Exxon Mobil Corp. will reportedly invest $10 billion in the project, making it the largest oil project in Guyana. Hess’ net share of development costs is forecast to be approximately $2.3 billion. The Yellowtail development in the Stabroek block is expected to produce about 250,000 barrels of oil per day starting in late 2025. The project will utilize the One Guyana FPSO, which will develop an estimated resource base of approximately 925 million barrels of oil. Six drill centers are planned with up to 26 production wells and 25 injection wells.
The Stabroek block covers some 6.6 million acres, and at least six FPSOs with a production capacity of more than 1 million gross barrels of oil per day are expected to be online there by 2027. The Hess announcement indicated that there could ultimately be up to 10 FPSOs in the area to develop gross discovered recoverable resources of more than 10 billion barrels of oil equivalent. ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds a 30% interest and CNOOC Petroleum Guyana Limited holds a 25% interest.

Reports also indicated that Exxon Mobil is also now seeking environmental approval for its fifth project: Uaru+. According to news sources in Guyana, this fifth project was announced by President of ExxonMobil Guyana Alistair Routledge in a video statement provided on April 4 to the local media.

“Even as we make this final investment decision for Yellowtail, our team here in Guyana has submitted an application for a fifth development in the Stabroek Block at Uaru+,” Routledge was quoted to say. This was confirmed on Monday by EPA’s Senior Environmental Officer Arethe Forde; it was noted that the application was submitted on March 23. Later, during the recent International Energy Conference in Guyana, Routledge said that as soon as engagements with the government on the Yellowtail development were concluded, the company would “begin talking about Uaru.”

Offshore staff 7/5/2022 LONDON
— Tullow Energy has appointed Petrofac to provide operations services for the deepwater Jubilee oil and gas field development offshore Ghana.
Petrofac’s responsibilities will cover provision of operations, maintenance and technical support for the FPSO Kwame Nkrumah.
The two companies are already collaborating on decommissioning of seven wells offshore Mauritania at Tullow’s Banda and Tiof fields.

Elsewhere in the region, Petrofac is performing offshore operations services for bp’s Greater Tortue Ahmeyim project, which includes an FPSO, off Mauritania and Senegal.

deepwater discoveries off Namibia

Venus puts southern Africa in the spotlight
Shell's and TotalEnergies' Graff and Venus deepwater discoveries off Namibia have put southern Africa under the exploration spotlight. With deepwater offering high productivity reserves, it's a spotlight that's likely to linger for a few years yet, despite continued offshore upstream capital discipline.

Time for appraisal

Shell has already started appraisal work on Graff, with the La Rona well, while TotalEnergies is planning its appraisal of Venus later this year. Outside of these two discoveries, Latham thinks there’s plenty of running room yet for Namibia, with Shell already looking at further exploration close to Venus on its acreage later this year. But there’s also running room elsewhere, he says. “There are other places on the African margin that might have good running room based on the same drilling densities,” says Latham. “Southern Angola, for example, barely drilled. ExxonMobil took a big acreage footprint two-three years ago. They said at the time it’s very frontier, but there are enough clues to make it interesting, and if it works it could be on the scale of Guyana and there are other places where similar stories are possible.”

Success offshore Namibia could also help spur activity in South Africa. “It’s only a matter of time before we see Shell and TotalEnergies coming into the Orange Basin alongside Venus and Graff, but within South Africa,” says Latham. “They have a big acreage footprint that side of the border.”

But, he adds, progress has been slow in South Africa, with securing permits for operations such as shooting seismic proving fraught at times. While South Africa has long had a small offshore industry, it’s on a bit of a new territory for governance and regulation, he says.

These challenges have resulted in some operators passing over licenses. The two headline discoveries, Brulpadda and Luiperd (Leopard), also contain a lot of gas, and that will need to find a domestic market “and that’s not going to be super quick to do that, when you look at the broader south African power market,” says Latham.

Deepwater in a continuing capital discipline environment
Offshore upstream spending still hasn’t returned to pre-Covid levels, despite a price environment that’s “changed out of all recognition.”

“The overall context is (still) capital discipline,” says Latham. But increasing reservoir quality in deepwater is making projects like the Stabroek discoveries and Graff and Venus attractive, thanks to higher productivity, measured by reserves produced per well.

“A lot of new deepwater development wells, such as in Guyana or the Santos Basin [offshore Brazil], are seeing 20-30 million barrels per well, which is extremely commercial,” says Latham. “Some of the earlier deepwater plays, like the Gulf of Mexico and Angola, it’s probably only half of that. So big the exploration successes in recent years have brought the industry into even more productive deepwater reservoirs than they already had.”

This is true for oil, but also gas, he says, with fields like Zohr [in Egypt] proving highly productive. The Israeli deepwater and Cypriot wells, if developed, are expected to be very highly productive, with Tcf levels per well. In these cases, “The commerciality isn’t burdened by the cost of drilling the well,” says Latham. “If we are getting 20 or 30 million barrels out of a well, even if that well is costing you $50 million, or even $100 million, it’s only adding a few dollars per barrel to the capital cost.”

Part of the reason for this trend in increasing productivity is operators being pickier about what they pursue.

“We might have $100 oil at the moment, and our long-term Brent forecast is $80/b, many companies are using $60/b as a planning assumption and $40 or even $30 as a breakeven for big new developments. If you use a low breakeven hurdle, you really have to have a high-quality reservoir and that’s forcing them into good quality deepwater plays.”

Guyana Oil and Gas Discoveries

Prosperity becomes Guyana’s third FPSO, joining two other SBM Offshore-delivered FPSOs, the Liza Destiny and Liza Unity. The FPSO will be spread moored in water depth of about 1,900 meters and is designed to produce 220,000 barrels of oil per day, with associated gas treatment capacity of 400 million cubic feet per day and a water injection capacity of 250,000 barrels per day. The FPSO will be able to store about two million barrels of crude oil. The FPSO will be used to produce oil from the Payara development
GUYANA SURINAME BASIN will produce 1,000,000 Bpd (2020-2029) 8 billion oil-equivalent barrels estimated at Stabroek Block	LIZA Destiny floater Phase 1 : 120,000 Bpd (2020) 17 wells 8 production wells, 6 water injection wells and 3 gas injection wells.
Mexico 7.3, Norway 6.6, Oman 5.3 and the United Kingdom at 2.5.	LIZA Phase 2 will produce 220,000 Bpd (mid-2022) 35-40 wells
Liquid Hydrogen Australia to Japan LH2 HySTRA held the ceremony in Kobe, Japan to celebrate the completion of the world’s first maritime transport of liquefied hydrogen, including its loading and unloading. The demonstration voyage by the world’s first LH2 carrier Suiso Frontier proved that an international LH2 supply chain is possible. Therefore, this voyage marked a significant step toward the use of hydrogen as a new, clean energy source. The Suiso Frontier left Japan in December 2021 and arrived in Australia in January 2022. The ship received liquefied hydrogen produced from coal in Victoria, Australia, and returned to Japan in February 2022, unloading the cargo to a landside storage tank. The 8,000 tonnes vessel can transport large quantities of LH2 over long distances by sea. The LH2 is at 1/800 of its original gas-state volume, cooled to –253°C. The HySTRA joint venture includes Iwatani Corporation, Kawasaki Heavy Industries, Shell Japan, J-POWER, Marubeni, ENEOS, and Kawasaki Kisen Kaisha. In addition, it has the support of the New Energy and Industrial Technology Development Organization (NEDO). Kawasaki Heavy designed and constructed the vessel in addition to the Hy touch Kobe, an LH2 cargo handling demonstration terminal. The JV developed technologies to produce and transport large volumes of liquefied hydrogen, conducting demonstration tests between Japan and Australia. These processes are to establish processes around the safe loading, offloading, and storage of hydrogen. Insights from the demonstration voyage are to also guide the development of international safety standards and codes for transporting LH2.
232 feet high-quality oil-bearing sandstone Redtail-1 well 09/08/2020 Liza Unity floater will push Guyana’s total 340,000 bpd by 2022 Offshore staff 02/11/2022 IRVING, Texas – ExxonMobil has started oil production at Liza Phase 2 on the Stabroek block offshore Guyana. This is the country’s second offshore oil development. This brings total production capacity to more than 340,000 b/d in seven years since the country’s first discovery. Production at the FPSO Liza Unity is expected to reach its target of 220,000 b/d of oil later this year. It adds to the more than 120,000 b/d of capacity at the FPSO Liza Destiny, which began production in December 2019 and is now delivering at better than design capacity. The Liza Unity arrived in Guyana in October 2021. It is moored in about 1,650 m (5,413 ft) of water and will be able to store around 2 MMbbl of crude. The Liza Unity is the world’s first FPSO to be awarded the SUSTAIN-1 notation by ABS in recognition of the sustainability of its design, documentation and operational procedures. The Stabroek block’s recoverable resource base is currently estimated at more than 10 Bboe. The current resource has the potential to support up to 10 projects. ExxonMobil anticipates that four FPSOs with a capacity of more than 800,000 b/d will be in operation on the Stabroek block by year-end 2025. Payara, the third project in the Stabroek block, is expected to produce about 220,000 b/d of oil using the FPSO Prosperity, which is currently under construction. The field development plan and application for environmental authorization for the Yellowtail project, the fourth project in the block, have been submitted for government and regulatory approval. FPSO operator SBM Offshore has been awarded contracts to perform Front End Engineering and Design (FEED) for an FPSO vessel for ExxonMobil’s Yellowtail development project located offshore Guyana. This will be the largest producing unit ever built by SBM. The FEED contract award triggers the initial release of funds by ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), to begin FEED activities and secure a Fast4Ward hull, SBM Offshore explained on Wednesday. Following FEED and subject to government approvals in Guyana of the development plan, project sanction including final investment decision by ExxonMobil, and EEPGL’s release of the second phase of work, SBM Offshore will construct, install, and then lease the FPSO and operate it for a period of up to two years. The first oil is expected in 2025. SBM Offshore will design and construct the FPSO using its Fast4Ward programme allocating the company’s sixth new build, multi-purpose hull combined with several standardized topsides modules. The FPSO will be designed to produce 250,000 barrels of oil per day, will have an associated gas treatment capacity of 450 million cubic feet per day and a water injection capacity of 300,000 barrels per day. The FPSO will be spread moored in a water depth of about 1,800 meters and will be able to store around 2 million barrels of crude oil. For the latest FPSO, SBM Offshore will be building on the experience to date on the Liza Destiny, Liza Unity, and Prosperity FPSOs. The Liza Unity arrived in Guyana in late October 2021 following a journey from Singapore. The production from the Liza Phase 2 development is on track to start in early 2022. Yellowtail will utilize the ONE GUYANA floating production, storage and offloading vessel (FPSO), which will develop an estimated resource base of approximately 925 million barrels of oil. Six drill centres are planned with up to 26 production wells and 25 injection wells. ONE GUYANA Partnership with McDermott In order to strengthen its execution model given the current challenging market environment, SBM Offshore established a special purpose company (SPC) with McDermott for the execution of the turnkey phase of the project. This SPC will benefit from the combined engineering and fabrication capacity as well as the experience of both companies in delivering EPC solutions. SBM Offshore will hold 70 per cent and McDermott will hold 30 per cent equity ownership in this SPC. The FPSO will be fully owned by SBM Offshore. Bruno Chabas, SBM Offshore’s Chief Executive Officer: “SBM Offshore is proud to announce ExxonMobil has awarded the contracts for the fourth FPSO to be deployed in Guyana. When finished, the FPSO will be the largest producing unit ever built by the company.” Chabas added: “We are also pleased to announce our partnership with McDermott and look forward to working together through the execution phase and deliver this world-class project.” Samik Mukherjee, McDermott’s Executive Vice President and Chief Operating Officer: “Our people and resources bring the proven project execution, integrated engineering and modularization capabilities essential for delivery assurance and success. We will align these strengths with those of SBM Offshore to drive a cohesive, efficient execution strategy together.” ExxonMobil’s Yellowtail is the fourth project that has been identified within the Stabroek Block and will see the development of the Yellowtail and Redtail fields. The company in October 2021 submitted its Environmental Impact Assessment (EIA) and Environmental Impact Statement (EIS) for the Yellowtail development to Guyana’s Environmental Protection Agency (EPA) for evaluation and recommendations period of 60 days. As reported earlier this week, TechnipFMC was awarded a contract to supply the subsea production system for the Yellowtail development. The scope includes 51 enhanced vertical deepwater trees (EVDT) and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment. ExxonMobil affiliate Esso Exploration and Production Guyana Lt.d is the operator and holds 45% interest. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Ltd. holds 25% interest.
232 feet (70 meters) of high-quality oil-bearing sandstone Redtail-1 well Tuesday, September 08, 2020 18th discovery offshore Guyana in the prolific Stabroek Block U.S. oil company ExxonMobil has made an oil discovery at the Redtail-1 well, offshore Guyana. The news of the discovery was shared Tuesday by both Exxon, and Hess, Exxon's partner in the prolific Stabroek Block.This is the U.S. oil major's 18th discovery offshore Guyana in the same block and will add the previously announced gross discovered recoverable resource estimate for the block of more than 8 billion barrels of oil equivalent."Redtail-1 encountered approximately 232 feet (70 meters) of high-quality oil-bearing sandstone and was drilled in 6,164 feet (1,878 meters) of water," Hess said. ExxonMobil used the Noble Don Taylor drillship to drill the Redtail-1 well. The well is located approximately 1.5 miles (2.5 kilometers) northwest of the Yellowtail discovery and is the ninth discovery in the southeast area of the block. In addition to the Redtail-1 discovery, drilling at Yellowtail-2 resulted in the discovery of additional reservoir intervals adjacent to and below the Yellowtail-1 discovery. Yellowtail-2 encountered 69 feet (21 meters) of high-quality oil-be aring reservoirs, which comprised the 17th discovery on the Stabroek Block, Hess reminded on Tuesday. This resource is currently being evaluated for development in conjunction with other nearby discoveries, the company said. Hess CEO John Hess said: "The Redtail-1 and Yellowtail-2 discoveries further demonstrate the significant exploration potential of the Stabroek Block and will add to the recoverable resource estimate of more than 8 billion barrels of oil equivalent." ExxonMobil operates the 6.6 million-acre Stabroek Block with a 45 percent share. Hess owns 30 percent, and CNOCC holds 25 percent.
July 29, 2020 Apache Corporation and Total S.A. announced major oil discovery at the Kwaskwasi-1 well drilled offshore Suriname in Block 58. Third consecutive discovery offshore Suriname confirms a world-class hydrocarbon resource. Kwaskwasi-1 well encountered 278 meters (912 feet) of net oil and volatile oil / gas condensate pay. Fourth exploration prospect in Block 58, Keskesi East-1, will be drilled immediately following conclusion of operations at Kwaskwasi. The well was drilled using the Noble Sam Croft with Apache as operator holding a 50% working interest and Total holding a 50% working interest. Kwaskwasi-1 was drilled to a depth of approximately 6,645 meters (21,800 feet) and successfully tested for the presence of hydrocarbons in multiple stacked targets in the upper Cretaceous-aged Campanian and Santonian intervals. Preliminary fluid samples and test results indicate at least 278 meters (912 feet) of net oil and volatile oil / gas condensate pay in two intervals. The shallower Campanian interval contains 63 meters (207 feet) of net oil pay and 86 meters (282 feet) of net volatile oil / gas condensate pay. Based on samples taken, the API oil gravities are between 34 and 43 degrees. The deeper Santonian interval contains 129 meters (423 feet) of net hydrocarbon reservoir. The team is still collecting data on API oil gravities in the Santonian. “We are thrilled with the results from the Kwaskwasi-1 exploration well. This is the best well we’ve drilled in the basin to date, with the highest net pay in the best quality reservoirs,” said John J. Christmann, Apache CEO and President. “While we have a lot more work to do, a discovery of this quality and magnitude merits a pace of evaluation that enables the option of accelerated first production.” Block 58 comprises 1.4 million acres and offers significant potential beyond the discoveries at Kwaskwasi, Sapakara West and Maka Central. Apache has identified at least seven distinct play types and more than 50 prospects within the thermally mature play fairway. Upon completion of operations at Kwaskwasi-1, the Sam Croft will move to the fourth prospect in Block 58, Keskesi, which is located approximately 14 kilometers (9 miles) southeast of Sapakara West-1. The Keskesi exploration well will test oil-prone upper Cretaceous targets in the Campanian and Santonian.
It takes just Four wells to produce in a 50 mile lineal distance NW to SE in block 58 Apache, Total encounter distinct fan system with second Block 58 discovery OGJ editors Apr 2nd, 2020 Apache and partner Total have identified 79 m of net oil and gas condensate pay offshore Suriname at the Sapakara West-1 well on Block 58. The discovery is the second ‘significant’ oil discovery on the block following the Maka Central-1 discovery. Apache Corp. and partner Total SA have identified 79 m of net oil and gas condensate pay offshore Suriname at the Sapakara West-1 well on Block 58. The discovery the second ‘significant’ oil discovery on the block following Maka Central-1 discovery in January, Apache said Apr. 2 (OGJ Online, Jan. 7, 2020). The partners will conduct additional tests to appraise the resources and productivity of the reservoir. Drilled by the Noble Sam Croft drilling facility to a depth of 6,300 m, the well encountered oil and gas condensate in two distinct upper Cretaceous intervals (Campanian, Santonian). The third and fourth exploration well locations in Block 58 have been identified. Preliminary fluid samples and test results indicate the shallower Campanian interval contains 13 m of net gas condensate and 30 m of net oil pay, with API oil gravities of 35-40 degrees. The deeper Santonian interval contains 36 m of net oil-bearing reservoir with API oil gravities of 40-45 degrees. “Based on a conservative estimate of net pay across multiple fan systems, we have discovered another very substantial oil resource with the Sapakara West-1 well,” said John J. Christmann, Apache chief executive officer and president. “Importantly, our data indicates that the Sapakara West-1 well encountered a distinct fan system that is separate from the Maka Central-1 discovery we announced in January this year.” Block 58 comprises 1.4 million acres and offers significant potential beyond the discoveries at Sapakara West and Maka Central. Apache has identified at least seven distinct play types and more than 50 prospects within the thermally mature play fairway. Upon completion of operations at Sapakara West-1, the Sam Croft will move to the third prospect in Block 58, Kwaskwasi, which lies 10 km northwest of Sapakara West-1. The fourth exploration target is Keskesi, which will be drilled 20 km southeast of Sapakara West-1. Both will test oil-prone upper Cretaceous targets in the Campanian and Santonian intervals in reservoirs that appear to be independent from the Maka and Sapakara discoveries. Apache is operator of Block 58 with 50%. Total holds the remaining 50%. Total will become operator of the block after the drilling of the fourth well (OGJ Online, Dec. 23, 2019).
Guyana produced 427,282 barrels of oil from December 20-31 ByOilNOW -February 18, 2020	Guyana’s Ministry of Finance in a report on February 17 stated that petroleum production for December 2019 amounted to 427,282 barrels or 35,607 barrels per day no operational losses for the period.
Greece-registered crude oil tanker, Cap Philippe alongside the Liza Destiny FPSO offshore Guyana. (Ministry of the Presidency photo) Greece-registered crude oil tanker, Cap Philippe, is set to depart Guyana waters with the government’s first 1 million barrels entitlement after arriving at the Stabroek Block last Thursday 02/12/2020. “These one million barrels is part of our profit oil allocation. It does not include the two percent royalty, which would be paid on gross productions. So, even though we are having a million barrels lift in this particular instance, we are also receiving two percent on all oil that is being produced. This gets us away from the perception that all Guyana is getting under the contract is two percent royalty. I am happy to say that Guyana is entitled to approximately five million barrels of oil in 2020 alone, plus the two per cent royalty, plus withholding taxes, plus the direct and indirect benefits through employment creation and other revenue-generated income. So, this is not a contract that we should take lightly, it is not an occasion that we should take lightly,” Dr. Mark Bynoe, Director of the Department of Energy said. Dr. Bynoe noted that the offloading takes between 20 to 36 hours and the process is expected to be completed tomorrow. He added that the required officials from the Guyana Revenue Authority and the Guyana National Bureau of Standards (GNBS) are on board to ensure the integrity of the investment is protected as well as to ensure and provide, the level of comfort to Guyanese that the requisite systems are in place to protect Guyana’s interests. “What has also been happening is that the GNBS has been working assiduously to tag specific meters that are critical in terms of measurement. They have also been working with the operators on the FPSO with regards to calibration so that the measurements that we are getting are precise as far as practically possible, and those tags are to protect the integrity of the system. When GNBS make their checks before they leave and when they return, they are able to ascertain that the system is not tampered with and that Guyana is getting its fair share,” he noted. With regard to pricing, as it was previously announced by the Department of Energy, Shell was nominated as the successful buyer of the Government’s first three cargoes, with each cargo being approximately a million barrels of crude. The selection of the successful bidder was based not only on Shell’s global supply and trading capability but also on a competitive sale with favourable payment terms. The sale of the first three cargoes has been concluded on a Dated Brent price basis, which reflects the tradable, spot market value of crude oil. The Department of Energy (DE) has also indicated that it will be launching a Request for Proposal (RFP) shortly to recruit a marketing firm, on a term basis, to assist the Department in selling Guyana’s future crude entitlement. Dr. Bynoe said the contract does deliver for Guyana and Guyanese and the Department is most proud to be part of the process. He said that Guyanese can look forward to even further revenue being generated to take the country along the economic paradigm that we have set ourselves. “This has been quite a momentous occasion looking at how far Guyana has come from over the past four years and nine months, from conceptualisation to actual fruition, where we begin to see production. Guyana is having her first lift and given the fact that it is our first lift, this is important to us, not only to see this but to bring the level of assurance to Guyanese that it is no more just a concept, it is actually a reality,” the Director said. Dr. Bynoe was accompanied by Ms. Joanna Simmons, Senior Legal Officer and Ms. Virginia Markouizou, Crude Marketing Specialist, both of the Department of Energy; Mr. Rod Henson, Country Manager of Esso Exploration and Production Guyana Limited (EEPGL) and Ms. Janelle Persaud, Public and Government Affairs Advisor, EEPGL.

Potential for ‘prolific oil wells’ seen in historic discovery offshore Suriname ByOilNOW -January 8, 2020 Apache’s historic oil discovery offshore Suriname has opened a new chapter in the potential of the Guyana-Suriname basin which the US Geological Survey (USGS) has long said could contain more than 13.6 billion barrels of oil and 32 trillion cubic feet of natural gas. If the USGS survey is anything to go by, at least half of the estimated oil resource has already been found offshore Guyana. The Maka Central-1 discovery at Suriname’s Block 58 has now proven that a working hydrocarbon system exists on the Dutch side of the basin. Maka Central-1 successfully tested for the presence of hydrocarbons in multiple stacked targets in the upper Cretaceous-aged Campanian and Santonian intervals and encountered both oil and gas condensate. “The well proves a working hydrocarbon system in the first two play types within Block 58,” Apache CEO John Christmann said on Tuesday. “Preliminary formation evaluation data indicates the potential for prolific oil wells.” In addition, “the size of the stratigraphic feature, as defined by 3-D seismic imaging, suggests a substantial resource,” Christmann said. Block 58 adjoins the Stabroek Block in neighboring Guyana, where an ExxonMobil-led consortium has made 15 discoveries in four-and-a-half years and last month became the first offshore producers of oil in that country from their Liza field. Exxon has found more than 6 billion barrels of oil at Stabroek. As a result, the Block 58 partners and analysts are optimistic about the Maka discovery, which is on trend with the gusher of Stabroek finds. Apache and Total, which are 50-50 partners in Block 58, said their next well will test the same-aged upper Cretaceous intervals in a separate and distinct stratigraphic feature. Apache’s stock rockets toward biggest gain (27%) in nearly 50 years (1970) after company strikes oil offshore Suriname. Raymond Plank deserves a wonderous place in anybodies history for what he was and did, include WWII. I met him sitting on a plain chair with the office door open in his Foshay Tower office. I was looking for oil and gas companies in Minneapolis, who might need somebody like me with 20 years of experience looking for mostly oil wells to sit on. He said quietly, "Charlie, we are moving to Denver!" That brilliant gentleman was not registering a happy look. We wished each other good luck and he made his own "good luck" the hard way. God bless you Ray in the next world.

Guyana enters 2020 as new oil producer with a total of 18 discoveries ByOilNOW -January 6, 2020 The South American country of Guyana has entered the new decade as an oil producer with a total of 18 discoveries made since 2015. There also remains massive potential for more discoveries from ongoing and planned exploration campaigns by multiple companies operating across several blocks offshore. US oil major ExxonMobil changed the course of Guyana’s destiny when it discovered the giant Liza field in 2015. The company has made a total of 15 discoveries with just two dry holes at the prolific Stabroek Block where estimated resources exceed 6 billion barrels of oil equivalent. In 2019 alone, 7 discoveries were made offshore; 5 from ExxonMobil and 2 (Jethro, Joe) from Tullow Oil in the Orinduik block. Repsol made its first discovery at the Carapa-1 well, announced in January 2020 by Tullow Oil, at the Kanuku Block. While the Orinduik and Kanuku discoveries may not be developed due to heavy oil (Jethro and Joe) and low volumes (Carapa), analysts say they have provided important technical data. Meanwhile, ExxonMobil’s oil strikes at Stabroek seem to all have high potential for development. The company expects to be producing upwards of 750,000 bpd by 2025 from five developments at the Stabroek Block. 2019 oil discoveries •The Tilapia discovery was announced in February 2019. Tilapia is ExxonMobil’s 11th oil discovery in the Stabroek Block. The Tilapia- 1 well was drilled in a new reservoir, encountering approximately 305 feet (93 meters) of high-quality oil-bearing sandstone reservoir and was drilled to a depth of 18,786 feet (5,726 meters) in 5,850 feet (1,783 meters) of water. •The Haimara discovery was announced in February 2019. Haimara is ExxonMobil’s 12th oil discovery in the Stabroek Block. The Haimara- 1 well was drilled in a new reservoir, encountering approximately 207 feet (63 meters) of high-quality, gas-condensate bearing sandstone reservoir. The well was drilled to a depth of 18,289 feet (5,575 meters) in 4,590 feet (1,399 meters) of water. •The Yellowtail discovery was announced in April 2019. Yellowtail is ExxonMobil’s 13th oil discovery in the Stabroek Block. The Yellowtail- 1 well was drilled in a new reservoir, encountering approximately 292 feet (89 meters) of high-quality oil-bearing sandstone reservoir and was drilled to a depth of 18,445 feet (5,622 meters) in 6,046 feet (1,843 meters) of water. •The Jethro-1 discovery was announced in August 2019. Jethro is Tullow Oil’s 1st discovery in the Orinduik Block. The well encountered 55m of net oil pay and was drilled to a total depth of 4,400m metres in approximately 1,350 metres of water. •The Joe-1 discovery was announced in September 2019. Joe is Tullow Oil’s 2nd discovery in the Orinduik Block. The well encountered 14 metres of net oil pay in high-quality oil-bearing sandstone reservoirs of Upper Tertiary age. It was drilled to a total depth of 2,175 metres in water depth of 780 metres. •The Tripletail discovery was announced in September 2019. Tripletail is ExxonMobil’s 14th oil discovery in the Stabroek Block. The Tripletail- 1 well was drilled in a new reservoir, encountering approximately 108 feet (33 meters) of a high-quality oil-bearing sandstone reservoir and was drilled in 6,572 feet (2,003 meters) of water. •The Mako-1 discovery was announced in December 2019. Mako-1 is ExxonMobil’s 15th oil discovery in the Stabroek Block. Mako-1 encountered approximately 164 feet (50 meters) of a high-quality oil-bearing sandstone reservoir. Mako-1, drilled in 5,315 feet (1,620 meters) of water, is located approximately six miles (10 kilometers) southeast of the Liza field, which began producing oil in December 2019. 2020 oil discovery •The Carapa-1 discovery was announced in January 2020. Carapa is Repsol’s 1st discovery in the Kanuku Block. The well encountered approximately four metres of net oil pay. It was drilled to a total depth of 3,290 metres in 68 metres of water.
Shell Prelude and new gas discovery160 kilometers northeast of the Shell-operated Prelude FLNG facility Shell Australia has made a significant gas and condensate discovery in the Browse Basin off the North West Coast of Western Australia. Drilling of the Bratwurst -1 exploration well, within title AC/P64, 100 percent owned and operated by Shell, was concluded earlier this month after a 78-day campaign. This campaign was completed in just over 18 months from bidding and 12 months from award of the AC/P64 title, Shell said in its statement. This discovery is located 160 kilometers northeast of the Shell-operated Prelude FLNG facility and presents an opportunity for a future tie-back to Prelude. It supports Shell’s growth plans for more and cleaner energy, with LNG being the predominant focus for Shell in Australia. “Gas is a core component of our strategy to provide more and cleaner energy solutions,” said Zoe Yujnovich, executive vice president, Shell Australia. “Today’s announcement shows how, through exploration, we are building a strong pipeline of discoveries to support our assets in Western Australia.” DECEMBER 12 2009 Map of basins encompassed by the NWS JumpStart package (Image: CGG) How will Liza Crude be priced on the market? ExxonMobil Guyana Senior Director, Public and Government Affairs, Deedra Moe, told OilNOW in a recent interview that the Liza Crude will be sold at Brent market price. “Whatever the price of crude oil is that day – we trade off of the Brent crude oil price – and that’s exactly what it will be, either plus or minus what the typical Brent price is,” she said. With production getting underway in Guyana just days ago on December 20, Huchzermeyer acknowledged that it is too early to say exactly what price the Liza crude will fetch. “It’s interesting because usually as new crudes come out onto the market, we often hear that they get this new crude discount. So, whatever prices we may be seeing, or starting to see at the first production; those might even out or equalize out over time as more refineries take it and run it through their system and see how they like it,” the Platts Managing Editor pointed. Who will buy Guyana’s first crude lifts? Guyana’s Department of Energy (DE) said on Tuesday Shell Western Supply and Trading Limited will be the buyer of the government’s first three crude lifts. This follows a series of meetings with bidders—including ExxonMobil, Hess, CNOOC, and Total, among other companies. The selection of Shell was based on criteria including competitive pricing that limits the government’s exposure to market uncertainty; the size, scale and global reach of the Shell trading operations; the company’s high level of integration between Upstream, Trading and Downstream; and Shell’s strong foothold in the Latin American markets and the size and scale of their shipping and storage operations in the region, which allows for multiple options on the Liza crude commercialization.The DE said one of the determining factors was also Shell’s willingness to share critical refinery information with the government which it needs in order to understand Liza crude behavior.

ExxonMobil makes 15th discovery offshore Guyana at Mako-1 well ByOilNOW -December 23, 2019 ExxonMobil said today it made an oil discovery offshore Guyana at the Mako-1 well southeast of the Liza field, marking the 15th discovery on the Stabroek Block. The discovery adds to the previously announced estimated recoverable resource of more than 6 billion oil-equivalent barrels on the Stabroek Block. Mako-1 encountered approximately 164 feet (50 meters) of a high-quality oil-bearing sandstone reservoir. Mako-1, drilled in 5,315 feet (1,620 meters) of water, is located approximately six miles (10 kilometers) southeast of the Liza field, which began producing oil in December 2019. “New discoveries in this world-class basin have the potential to support additional developments,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil. “Our proprietary full-wave seismic inversion technology continues to help us better define our discovered resource and move rapidly to the development phase.” The Liza Phase 1 development achieved first oil on Dec. 20, 2019 and will produce up to 120,000 barrels of oil per day utilizing the Liza Destiny floating production storage and offloading vessel (FPSO). The Liza Unity FPSO, which will be employed for the second phase of Liza development and will have a production capacity of 220,000 barrels of oil per day, is under construction and expected to start production by mid-2022. Pending government approvals and project sanctioning of a third development, production from the Payara field north of the Liza discoveries could start as early as 2023, reaching an estimated 220,000 barrels of oil per day. Drilling activities in Guyana continue with four drillships to further explore and appraise new resources as well as develop the resources within approved projects. 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.
Doyon 26; the largest mobile land rig in North America and some 1.5 to 2 times as powerful as existing rigs. To achieve an Extended Reach Drilling of 37,000 ft from a 14-acre pad with a 154 sq. mile reach, Doyon started designing and building Rig 26 in 2016. It was manufactured in Alberta. Starting in July 2019, they took it apart and shipped it to the Alaska North Slope with 267 truckloads. The last truckload should arrive in Nov 2019 and the rig should do its "first drill" in Apr 2020. "Doyon 26 is the largest mobile land rig in North America and some 1.5 to 2 times as powerful as existing rigs." Even though it is significantly larger, this self-propelled rig can move as fast as existing rigs. [ConocoPhillips-move] This month, a new extended reach drilling (ERD) rig with breakthrough capabilities is beginning its 2,400-mile journey from Nisku, Alberta, Canada to a drilling pad on Alaska’s North Slope. Called Doyon 26, the 9.5-million-pound rig — equivalent to almost 10 fully loaded Boeing 747s — will be hauled to Deadhorse, Alaska in pieces. The last of its 267 separate tractor-trailer loads will arrive by November 2019. “We will take the rig apart in Canada and transport it via trucks to Alaska, running up the Alaska Highway and then up the Dalton Highway. When all the pieces arrive, we’ll put it back together like a big Lego to make seven rig modules,” said Paul McGrath, ERD project director. The modules will cross the resupply roads to Alpine in the first quarter of 2020, he said. The anticipated “first drill” date for the new rig is April 2020. Paul McGrathERD Project Director Paul McGrath SMALLER FOOTPRINT The ERD rig is expected to increase oil production by accessing previously unreachable resources without expanding the surface footprint. Doyon 26 will enable the development of Fiord West, a field discovered in 1996, located northwest of the main Alpine field. “ConocoPhillips Alaska has worked on the rig about four years, from initial FEED (front end engineering design) studies and concept stage. During construction we had assistance from our colleagues in Canada. The team recognizes what a game changer this will be for ConocoPhillips Alaska,” McGrath said. “Even though it’s bigger, it’s more agile and more effective at fitting into tight well spacing,” McGrath said. “Special stomper feet will allow us to very accurately walk the rig modules in around tight tolerance areas.” LONGER REACH, SELF-PROPELLED The development rigs working for ConocoPhillips on the North Slope today do not have the capability to access Fiord West without a newly constructed gravel pad, additional pipelines and more roads. Doyon 26 does. Extended reach technology enables the more powerful rig to drill targets seven miles from the surface location. Existing rigs are designed to drill about 22,000 feet from the pad, while the highly specialized Doyon 26 will be able to reach 37,000 feet. That means from a 14-acre drilling pad the high-tech rig will be able to develop 154 square miles of reservoir versus today’s 55 square miles. Chip AlvordAlaska Drilling Manager Chip Alvord A development rig often needs to be moved hundreds of miles in a single winter, so mobility is another key factor. “We asked the manufacturer to make this large rig as mobile as typical North Slope rigs,” said Chip Alvord, Alaska drilling manager. “That’s quite a challenge given the size of the rig, but Doyon’s design met that challenge.” The rig moves as fast as the other rigs, and it’s also self-propelled. “The rig’s mobility will allow it to get online and drill a well more quickly,” Alvord said. Note one of the sets of wheels on the right side of the rig.
232 feet (70 meters) of high-quality oil-bearing sandstone Redtail-1 well Tuesday, September 08, 2020 18th discovery offshore Guyana in the prolific Stabroek Block U.S. oil company ExxonMobil has made an oil discovery at the Redtail-1 well, offshore Guyana. The news of the discovery was shared Tuesday by both Exxon, and Hess, Exxon's partner in the prolific Stabroek Block. This is the U.S. oil major's 18th discovery offshore Guyana in the same block and will add the previously announced gross discovered recoverable resource estimate for the block of more than 8 billion barrels of oil equivalent. "Redtail-1 encountered approximately 232 feet (70 meters) of high-quality oil-bearing sandstone and was drilled in 6,164 feet (1,878 meters) of water," Hess said. ExxonMobil used the Noble Don Taylor drillship to drill the Redtail-1 well. The well is located approximately 1.5 miles (2.5 kilometers) northwest of the Yellowtail discovery and is the ninth discovery in the southeast area of the block. In addition to the Redtail-1 discovery, drilling at Yellowtail-2 resulted in the discovery of additional reservoir intervals adjacent to and below the Yellowtail-1 discovery. Yellowtail-2 encountered 69 feet (21 meters) of high-quality oil-bearing reservoirs, which comprised the 17th discovery on the Stabroek Block, Hess reminded on Tuesday. This resource is currently being evaluated for development in conjunction with other nearby discoveries, the company said. Hess CEO John Hess said: "The Redtail-1 and Yellowtail-2 discoveries further demonstrate the significant exploration potential of the Stabroek Block and will add to the recoverable resource estimate of more than 8 billion barrels of oil equivalent." ExxonMobil operates the 6.6 million-acre Stabroek Block with a 45 percent share. Hess owns 30 percent, and CNOCC holds 25 percent.
At 180km offshore Guyana in deep to ultra-deep water, the Canje Block is said to be highly prospective with an environment of disposition unique among offshore Guyana blocks in that it contains both continental slope and basin floor terrain. Most of the discoveries offshore Guyana to date have been made in the slope environment and Canje will be the first block offshore to test prospects on the basin floor – which have the potential to contain larger accumulations of recoverable hydrocarbons. In fact, Westmount Energy, which has purchased 1,350,000 common shares in JHI Associates Inc., a stakeholder in the Canje Block where US oil major ExxonMobil is operator, believes that the first target on the block – Bulletwood-1 – closely resembles the Liza reservoir where Exxon made its first world-class discovery in 2015. Bulletwood-1 is expected to be spudded before the end of this year. Back in 2016 a 6,100 km2 3D seismic survey was conducted on the Canje Block and this data has been used to define a substantial inventory targeting three initial prospects – Bulletwood, Jabillo, and Sapote. Westmount says Bulletwood-1, “a Liza look alike” is targeting more than 500 million barrels of oil “with a possible second well targeting billion barrel-class basin floor turbidite fan2.” The company said the Guyana-Suriname basin offers ‘advantaged barrels’ with low breakeven costs providing significant potential to sustain offshore Guyana as a major investment growth area. Consultancy group Wood Mackenzie has pointed out that with the global coronavirus pandemic and decline in oil prices, projects which have clear strategic drivers, robust economics and operators with strong balance sheets are advantaged. “Advantaged deepwater oil in places like Guyana and Brazil, along with niche LNG – including low-cost greenfield and feed gas backfill at legacy liquefaction projects – will progress,” Rob Morris, from the consultancy group’s upstream research team, has said.
Discoveries at Stabroek Block to date exceed 6 billion barrels of oil equivalent. US oil major ExxonMobil has made 14 discoveries at Stabroek while UK-based Tullow Oil has made 2 at Orinduik. IHS Markit said all the fields that are expected to be developed and brought online within the two blocks showcase a positive internal rate of return (IRR). The IRR for the fields ranges from 10% to 52%, with the Liza field leading on this parameter. Rystad Energy said global exploration efforts must continue in order to discover volumes from not-yet-discovered fields, even under a scenario whereby oil demand peaks in the late 2020s. In addition, operators will need to empty their portfolio of unsanctioned commercial discoveries over the coming years. “This means that although we need to discover additional resources, only fields with breakeven prices below $60 Brent are likely to be commercial through 2030 and likely towards 2040,” says Audun Martinsen, head of oilfield services research at Rystad Energy. “If the global E&P industry were to fail to discover sufficient resources at such breakeven prices, global demand would need to be satisfied by utilizing otherwise uncommercial fields, or transition more quickly to a different power mix” Rystad Energy, the independent energy research and consulting firm headquartered in Norway with offices across the globe, tracks all new oil and gas project commitments globally – so-called greenfield sanctioning. These are the projects that are planned to meet future oil and gas demand. In 2019, oil and gas projects representing around $200 billion of investments were sanctioned. In 2020 Rystad Energy forecasts as much as $225 billion worth of projects will be sanctioned, driven primarily by gas projects, and with $50 billion coming from onshore liquefied natural gas (LNG) facilities. Offshore project sanctioning is likely to surpass $100 billion in 2020. “With Brent oil prices at $60 per barrel, E&P operators are able to sanction oil and gas projects worth about $200 billion per year, driving a lot of interesting contract awards and elevating optimism among oilfield service providers,” Martinsen observed. While most offshore projects sanctioned this year have breakeven prices below $40 per barrel, we foresee breakeven risk for the period 2020 through 2023. During this four-year period, offshore projects worth $25 billion, or almost 7% of the total, have a breakeven price above $60 per barrel.
The project has four drill centers with 17 wells in total; eight oil producing wells, six water injection wells, and three gas reinjection wells. The Liza Phase 1 Development is located approximately 190 kilometers offshore Guyana in water depths of 1,500– 1,900 meters. The Liza Destiny is designed to produce up to 120,000 barrels of oil per day, with storage capacity of up to 1.6 million barrels. From the first discovery announced in May 2015, to first oil, now potentially just days away; the tremendous work that has gone into bringing the Liza Phase 1 Development project to the point of production will soon pay off. The more than 1,700 Guyanese men and women who have been working on the project to date, will celebrate along with their countrymen, the first barrel of crude to be produced from the oil field that first placed Guyana on the map of frontier countries to watch, in the world of oil and gas. Since discovering the initial 800 million to 1.4 billion barrels of oil equivalent, ExxonMobil has gone on to find more than 6 billion barrels of crude from a total of 14 discoveries at the prolific Stabroek Block. Now, the oil major and its co-venturers Hess and CNOOC along with the government and people of Guyana, are about to embark on a new journey that can potentially transform the small South American country of just over 750,000 people, to one of the most prosperous in the region. “It’s very exciting to be where we are at,” Deedra Moe, ExxonMobil Guyana Senior Director, Public and Government Affairs, told OilNOW on Wednesday. “These projects take a great deal of time and effort. We’ve been able to do this in a shortened timeframe, but it still takes a ton of effort and coordination, and partnership and working together to get where we are at.” The Liza Destiny FPSO arrived in Guyana at the end of August, ahead of schedule, and has been prepping since then for the historic production of that first barrel of oil. “We are finalizing all the hook-up and we have started the commissioning. We are pressure testing all the lines and double-checking, making sure they are no issues or potential leaks. All that has to be done to make sure that we start up safely and that we are protective of the environment when we do so,” Moe pointed out. The Liza Destiny FPSO was converted from the oil tanker, “Tina”, a 1999 Very Large Crude Carrier (VLCC). The conversion included upgrading of the hull and integration of 14 topside processing modules, totaling 16 thousand metric tonnes. Dutch floater specialist SBM Offshore was contracted by ExxonMobil to build and operate the vessel. “As Guyanese, we should begin to recognise that it is a vessel that will be paid for by Guyanese, pumping Guyanese fuel which will be bringing in revenue for Guyanese to help our country to ultimately be transformed positively from an economic development perspective. It is imperative that as Guyanese we begin to appreciate that the direct and the indirect benefits that emanate from this sector goes far beyond anything that we have seen thus far,” Dr. Mark Bynoe, Director of Guyana’s Department of Energy, said at the time of the FPSO’s arrival. The Liza Phase 1 Development is located approximately 190 kilometers offshore Guyana in water depths of 1,500– 1,900 meters. The Liza Destiny is designed to produce up to 120,000 barrels of oil per day, with storage capacity of up to 1.6 million barrels.
Saipem awarded a subsea contract by ExxonMobil Payara development project Italian oilfield services firm Saipem said it has been awarded a subsea contract by ExxonMobil subsidiary Esso Exploration and Production Guyana Limited (EEPGL) for the proposed Payara development project located in the Stabroek block offshore Guyana at a water depth of around 2,000 meters. The contract scope includes subsea structures, risers and flowlines. Saipem was awarded earlier subsea contracts for the first two phases of the Liza development in Guyana by EEPGL in 2017 and in 2018, respectively. Subject to government approvals, project sanction by EEPGL and its partners HESS Guyana Exploration Ltd and CNOOC Nexen Petroleum Guyana Ltd and an authorization to proceed with the final phase, Saipem will perform the detailed engineering, procurement, construction and installation (EPCI) of a large subsea production facility. This facility will include approximately 130 kilometers of flowlines, rigid risers, associated terminations and jumpers together with the installation of manifolds, flexible risers, dynamic and static umbilicals and flying leads. Testing and pre-commissioning of the subsea field will follow installation. Before the necessary government approvals and project sanction, the contract award will allow the start of limited activities, namely detailed engineering and procurement. Saipem’s flagship vessels FDS2 and Constellation will perform the offshore operations using an optimized combination of different pipe-lay methods - J-Lay and Reel-lay. Stefano Cao, Saipem’s CEO, said, “The award of this new contract strengthens Saipem’s presence in Guyana. The long-term basis of our cooperation with our clients is at the very foundation of our business model. Working with ExxonMobil, especially on the continued oil & gas development projects in Guyana, represents both an opportunity and a responsibility to preserve our relationship with stakeholders through sustainable performance. Our relentless attention to safety, environment, innovation and cost efficiency are key to consolidate our position as one of the leading companies in the offshore subsea”. Furthermore, Saipem has been awarded certain variation orders for additional works linked to ongoing offshore E&C projects in Saudi Arabia, Azerbaijan and in the North Sea. The overall value of the above-mentioned contracts, together with the contract in Guyana, is worth approximately $880 million.
Tullow, Eco shares nosedive as Guyana discoveries ‘heavy oil’ Offshore Energy Today Staff Thursday, November 14, 2019 Stena Forth drillship used by Tullow for Jethro and Joe wells. Source: Stena Drilling Shares of Tullow Oil and Eco Atlantic fell sharply Wednesday morning after the two companies announced the two discoveries recently struck offshore Guyana contained heavy oil with high sulfur percentage. Tullow announced the two discoveries – Jethro 1 and the Joe-1 in its Orinduik block in August and September, respectively. As previously reported, the Jethro-1 well hit 55 meters of net pay in high-quality sandstone reservoir in the Lower Tertiary and Joe-1 encountered 14 meters of net pay, opening a new play in the Upper Tertiary. However, Tullow on Wednesday said that the laboratory analysis of the Joe and Jethro oil samples indicated the oil struck is heavy crude, with high sulfur content. “Tullow and the Joint Venture Partners are assessing the commercial viability of these discoveries considering the quality of the oil, alongside the high-quality reservoir sands and strong overpressure,“ Tullow said. Tullow shares were down 21,5 percent, and its partner Eco’s shares were down 49,9 percent at quarter to noon (CET) on Wednesday. Eco said Wednesday that the complete fluid analysis had not yet been received however, initial results suggest that the samples recovered to date from Jethro-1 and Joe-1 are mobile heavy crudes, ”not dissimilar to the commercial heavy crudes in the North Sea, Gulf of Mexico, the Campos Basin in Brazil, Venezuela, and Angola, with high sulfur content.” According to Eco, the partners have sought third party consultant with heavy oil development expertise to answer technical queries and provide an initial assessment of several potential development drilling and production scenarios. Eco said that the Jethro-1 discovery had the advantage of 8,500 PSI reservoir (2,600 PSI Overpressure), Upper Tertiary, which increases drive efficiency; high reservoir temperature of 94 degrees Celsius; and an estimated flowing wellhead temperature of 90 degrees, which both increases oil mobility and provides an advantage at the floating production facility. Eco still optimistic Eco said it remained optimistic in considering the development scenarios and that it would define further information on plans and timing as the project progresses. Colin Kinley, Co‐Founder and Chief Operating Officer for Eco, said: “Having spent three decades working within the heavy oil industry, we are very encouraged by the initial analysis of these wells and good parameters that define potential pathways to recovery. The fact that the oil is already hot in the reservoir, and mobile, and has high quality porous sand to travel through, helps to eliminate a great part of the conventional heavy oil challenge. “Having 8500 PSI in the porous warm formation is an added advantage to drive the oil to the well. Horizontal well technology can allow excellent access to these thick fields and generally reduces the need for multiple additional wells, leading to lower development cost per barrel,” he said. “We look forward to keeping the market appraised of our progress towards potential commercial production, further drilling in 2020 within the block and remain extremely confident about the future.” Gil Holzman, Co‐Founder and Chief Executive Officer for Eco, said: “This is obviously just the beginning of our journey to unlock the block’s full potential, which, following these initial discoveries, we hope to demonstrate through an updated CPR in the coming weeks. To date, ExxonMobil have drilled 16 wells in just over four years with 14 discoveries. Eco and its partners have drilled two wells, with two discoveries, and our interpretation and understanding of the block is an exciting work in progress as we continue to analyze and improve our understanding of the plays.” Guyana preparing for first oil As for Exxon, the company is gearing up to make Guyana an oil-producing country by bringing online the first phase of the Liza oil discovery development in the nearby Stabroek block. The company will use the Liza Destiny FPSO which reached Guyana in August. Production is expected to start in December, ahead of the original 1Q 2020 plan. Exxon has also ordered the FPSO from SBM Offshore for the second phase of the Liza Development – the Liza Unity FPSO – to be supplied by SBM. China’s Waigaoqiao Shipbuilding launched the Liza Unity FPSO hull in June. This will be the first FPSO built under SBM Offshore’s Fast4Ward program – a standardized FPSO designed to systematize the FPSO construction and delivery process, thus reducing cost and speeding up the time to the market. The discoveries offshore Guyana so far have established the potential for at least five FPSO vessels producing more than 750,000 barrels of oil per day by 2025. ExxonMobil last week awarded SBM Offshore has been awarded contracts by ExxonMobil to perform front end engineering and design (FEED) for what will be its third FPSO in Guyana – the Prosperity. This FPSO will be used to develop the Payara discovery, also located in the Stabroek block. The FPSO will be designed to produce 220,000 barrels of oil per day, will have associated gas treatment capacity of 400 million cubic feet per day, and water injection capacity of 250,000 barrels per day.
Associated gas deposits offshore Guyana could pipe to shore to generate electricity Associated gas deposits which have been found with the significant oil discoveries made offshore Guyana could be piped to shore as early as 2023 to help generate electricity to fulfil the South American country’s domestic needs. While the priority, as outlined in the Production Sharing Agreement between Guyana and ExxonMobil – operator at the 6.6 million acres Stabroek Block – is oil recovery, Director of the country’s Department of Energy (DE), Dr. Mark Bynoe, says focus is also being placed on piping gas to shore to generate electricity. The cost of electricity in Guyana is considerably high and has served as a barrier to the growth and expansion of enterprise – particularly those in the manufacturing sector. With the discovery of more than 6 billion barrels of oil at the Stabroek Block, officials have been looking at cheaper ways to generate power. This has seen ongoing discussions taking place with the US oil major about the prospect of taking gas to shore. Dr. Bynoe reminded reporters at a recent press conference in Georgetown that in order to enhance oil recovery some amount of gas would have to be reinjected into the reservoirs. As such, he said gas is not likely to be available in significant quantities until 2035. “However, in the short term, the operator can make enough gas available to meet our domestic demand which would generate somewhere around 188 megawatts,” he said. The DE Director said government is currently examining potential sites for where the pipeline would land onshore. “The earliest date we are looking at is 2023 to 2024,” he said, pointing out that there are several factors to be considered when building the pipeline and infrastructure. “You do not want to be building a pipe now and realise for example that the pipe you are building is too small for when more substantial gas becomes available.” Dr. Bynoe also signaled that the soon-to-be newest oil producer on the continent may also be interested in pursuing a petrochemical industry with export capacity. “So, if you are going to have subsequent or additional industries around then you have to have land space. When you start speaking about whether it would be petrochems, LNG, bitumen…whatever the other products may be, then the whole discussion that comes into that will involve issues of exportation.” This, he stated, makes the matter of location for landing the pipeline even more important. ExxonMobil Guyana Country Manager, Rod Henson, has told OilNOW that based on investigations, diverting natural gas to shore is technically feasible. “It could touch everybody…it could lower electricity prices, lower energy prices for individuals. But there is a multiplier effect too. If you lower energy prices for businesses it is really an enabler to help the economy, to help all businesses…,” he had said. ExxonMobil, Henson said, is doing its part by “coming to the table with technology and ideas” to see how best the diversion of natural gas to shore can become a reality.

The Society for Gas as a Marine Fuel (SGMF) is a membership based nongovernmental organisation (NGO) established in 2013 to promote safety and industry best practice in the use of gas as a marine fuel. The Society has full consultative status at the IMO and is the recognised representative body for the industry. 2018	167 LNG fueled ships in operation and 167 more on order 10 vessels supplying LNG as fuel and 19 more on order to supply LNG as fuel 2019 75 Ports/Terminals supplying LNG as fuel Society for Gas as a Marine Fuel (SGMF)

Energy Conversions Inc. and New Delhi’s CLH Gaseous Fuel Applications Two Locomotive Units Converted with CLH Are in Service, Two More Engine Kits Have Been Prepared and Delivered
With a 20+ year history of engineering and manufacturing LNG rail equipment for various US and Canadian pilot projects, ChartInc. was approached to design and supply the fuel LNG tender car. The tender car would need to support one to two locomotives that could displace 80% of the diesel fuel and meet or exceed thecurrent FRA and AAR requirements. It was designed with the ability to refill with minimal effort. FEC Railway began operating on LNG in 2015 and converted its entire mainline fleet to run on the fuel earlier this year, making it the first North American railroad to use LNG as a locomotive fuel. Mexican mining and railroad company Grupo Mexico SAB has agreed to buy Florida East Coast Railway Holdings Corp. expanding its transport operations in the U.S. with the acquisition. *Natural gas STEAM locomotive 1910* *Natural gas STEAM locomotive 1910*

HISTORY of LNG 1960 - 2013
United States Gas Production by State 1906-1924 United States natural_gas_Production 1930_2008 Shale Gas Eagle Ford 2011 Shale Gas Information 2008 Shale Gas Information 2009	Proved Natural Gas Reserves Tcf Total world 5,500 {2003} Tcf Total world 6,600 2010 LNG Demand 2000 to 2015 LNG TERMINALS
Taconite_2011-13 NRRI Essar Steel Minnesota LLC Keetac USS mine Mesabi Nugget	Taconite_2011-13 Thompson Cliffs Canada United Taconite Cleveland-Cliffs, Inc United States Steel Corporation Minnesota Ore Operations ArcelorMittal Minorca