The Exxon Mobil Corp.-led consortium on Jan. 5 announced two significant discoveries at Fangtooth-1 and Lau Lau-1 in the Stabroek block offshore Guyana, adding to the previously announced recoverable resource estimate for the block of 10 billion oil-equivalent barrels.

“Initial results from the Fangtooth and Lau Lau wells are a positive sign for Guyana and continue to demonstrate the potential for the country’s growing oil and gas sector, Exxon Mobil and our co-venturers in the Stabroek block,” said Mike Cousins, senior vice president of exploration and new ventures at Exxon Mobil.

The Fangtooth-1 well encountered approximately 164 ft of high-quality oil-bearing sandstone reservoirs, Exxon Mobil and project partner Hess Corp. noted in separate releases. Fangtooth-1 was drilled in 6,030 ft of water by the Stena DrillMAX and is located approximately 11 miles northwest of the Liza Field.

The Lau Lau-1 well encountered approximately 315 ft of high-quality hydrocarbon-bearing sandstone reservoirs. The well was drilled in 4,793 ft of water by the Noble Don Taylor and is located approximately 42 miles southeast of the Liza Field.

“The Fangtooth discovery is a successful result of our strategy to test deeper prospectivity, and the Lau Lau discovery adds to the large inventory of development opportunities in the southeast part of the Stabroek block,” added Cousins. “Both discoveries increase our understanding of the resource, our continued confidence in the block’s exploration potential, and our view that the many discoveries to date could result in up to 10 development projects.”

In a separate statement, Hess CEO John Hess commented, “We are excited to announce two more significant discoveries on the Stabroek Block. Positive results at Fangtooth, our first standalone deep exploration prospect, confirm the deeper exploration potential of the Stabroek Block. Both discoveries further underpin our queue of future low cost development opportunities."

Separately, the companies noted that progress continues on infrastructure for future field development. The Liza Unity FPSO vessel is undergoing hookup and commissioning after arriving in Guyanese waters in October 2021. The Unity is on track to start production in the first quarter of 2022 and has a target of 220,000 bbl/d of oil at peak production.

The hull for the Prosperity FPSO vessel, the third project on the Stabroek block at the Payara Field is complete and topside construction activities are ongoing in Singapore for planned production start-up in 2024. The Field Development Plan and Environmental Impact Assessment for the fourth potential project, Yellowtail, have been submitted for government and regulatory review.

These new projects continue to drive investment in Guyana’s growing economy. More than 3,200 Guyanese are now employed in supporting project activities, and Exxon Mobil and its key contractors have spent more than $540 million with more than 800 local companies since 2015.

The Stabroek block is 6.6 million acres. While Exxon Mobil holds 45% interest in the Stabroek Block, Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Ltd., a wholly-owned subsidiary of CNOOC Ltd., holds 25% interest.