ExxonMobil announces 19% reserves growth

first_imgExxonMobil Corporation recently announced that its oil and gas reserves grew by 19 per cent in 2017 owing to growth in several places like the US, the United Arab Emirates and Guyana. ExxonMobil reported its reserve update following its fourth-quarter earnings, which failed to meet expectations.In 2017, the company added 2.7 billion barrels of oil equivalent (BOE) to its reserves, which marks 183 per cent production replacement. It brings the company’s total proved reserves to 21.2 billion BOE. ExxonMobil believes that the proved reserves hold significant development opportunities, which can grow shareholder value in the coming years.Of the total proved reserves, 57 per cent was liquids, which increased by four per cent from 53 per cent in 2016. At the current production rate of the company, its reserves are expected to last for 14 years.ExxonMobil spent more than $6 billion in 2017 to increase its presence in the Permian Basin. The company added more than 800 million BOE to its reserves in the basin. The Upper Zakum field in the United Arab Emirates contributed another 800 million BOE. The company’s Guyana assets provided proved reserves of 3.2 billion BOE, where it is partnering with Hess Corporation HES and others.The company’s press release stated, “ExxonMobil’s resource base totalled approximately 97 billion oil-equivalent barrels at year-end 2017, taking into account field revisions, production and asset sales.”In May 2015, Exxon confirmed more than 295 feet of high-quality oil-bearing sandstone reservoirs was encountered at its Guyana Liza 1 exploration well.In late June 2016, Exxon’s drilling results at Liza 2 revealed more than 58 metres of oil-bearing sandstone reservoirs in Upper Cretaceous formations. The well was drilled to 5475 metres, at 1692 metres water depth. Drilling results confirmed recoverable resources to be between 800 million and 1.4 billion barrels of oil equivalent.The company had announced that it made its third significant discovery in its drilling explorations offshore Guyana. Its partner, Hess Corporation, had noted that the Liza 3 exploratory well’s net value could be US$6.2 billion based on calculations from the Bank of Montreal (BMO) Capital Markets.Drilling on Payara began on November 12, 2016, with initial total depth reached on December 2, 2016. In January of 2017, the oil giant had announced it had struck some 95 feet of oil reservoirs in its Payara-1 well, targeting the same type of reservoirs as the well’s Liza counterpart.Oil was discovered in the Turbot-1 well in October of 2017. According to the oil company following the discovery, the well reservoir was 75 feet deep. Drilling has been ongoing at the Turbot well since August 2017.The Stabroek Block is 6.6 million acres. Esso Exploration and Production Guyana Limited is the operator and hold a 45 per cent interest in the Stabroek Block. Hess Guyana Exploration Ltd holds a 30 per cent interest, and CNOOC Nexen Petroleum Guyana Limited holds a 25 per cent interest.last_img read more