Off the coast of Guyana, Exxon Mobil Corp. has found what appears to be a multi-billion barrel oil patch. The find could be a just what Exxon needs, and could put Guyana among the major oil producing countries in the world by generating even more production than OPEC members Equatorial Guinea and Gabon. Bloomberg‘s Kevin Crowley reports:
Exxon Mobil Corp. increased its estimate for a giant offshore oil discovery in Guyana by 25 percent yesterday, but it may just be the beginning.
Some 8 of 10 exploration wells have struck oil since 2015 and Exxon has identified a further 19 targets to drill, according to researcher Wood Mackenzie Ltd. The oil giant is so optimistic about finding more oil that it’s running two drill ships purely focused on exploration concurrently off the coast of the tiny South American nation.
“There’s multi-billion barrel potential remaining on the block,” said Ruaraidh Montgomery, a Houston-based analyst at Wood Mackenzie, referring to the exploration area named Stabroek. “It’s such a large block. We’re talking 1,000 times bigger than the average Gulf of Mexico block.”
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Jeremy Jones, CFA
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