Exxon Mobil to invest US$600M into oil exploration in Guyana

U.S. giant oil company Exxon will be venturing into the waters of Guyana for the exploration of oil at the cost of some US$600 million. A 118-foot wide vessel, with over 200 people onboard, will depart the Gulf of Mexico to the designated area over 100 miles offshore Guyana. Drilling is expected to begin next month.

The area, known as the Liza Area or the Stabroek Block Area measuring some 26,806 square kilometres is said to be the target area and the company intends to drill 1750 metres in depths that reach up to 3000 metres.

Officials from the company explained that while they are not yet sure if prospect will be successful, they are still prepared to invest the money into the venture.

Jeff Simons, Country Manager of Esso Exploration and Production Guyana Limited (EEPGL) stated that it may take them seven or more years to find oil in the country, explaining that the specialists just know the layout of the underwater area, such as where rocks and various obstacles are located, based on the seismic data gathered.

The project is expected to be a 10-year exploration with three periods including two phases in each period while each period lasts for one to two years, with the strictest safety procedures expected to be followed throughout the project.

Erik Oswalk, Vice President of the Americas mentioned that they already trained a fleet of drivers they will be using for the venture while every other staff member has been trained with basic first aid procedure and contractors were encouraged to wear appropriate attire on the job.

Exxon is the world’s largest publicly traded international oil and gas company that has existed for 130 years. Exxon replaced the Esso, Enco, and Humble brands in the United States on January 1, 1973.

Guyana has a history of petroleum exploration. Guyana’s offshore Guyana Basin and the inland Takatu Basin have attracted companies such as Shell, Total and Mobil since the 1940s that have done much geological surveyance of the area and have drilled a number of wells.

As of 2008, there were four companies undertaking exploration work in Guyana. These were Exxon-Mobil, Repsol, Century Guyana Ltd and CGX. The Petroleum Division of the Guyana Geology and Mines Commission has the responsibility of monitoring surveyance in Guyana.

The venture is expected to provide job opportunities to Guyanese in several areas when operations commence.