Cabinet has approved a contract for a French company to conduct an oil reservoir audit, in an effort to independently verify how much oil is actually in the Stabroek block offshore Guyana, held by United States (US) oil giant ExxonMobil.
This was revealed by Natural Resources Minister Vickram Bharrat, during a press conference on Wednesday. While ExxonMobil provides the state with estimates on how much oil is in the Stabroek block based on their own exploration and assessments, having the audit done will ensure the government can independently verify how much oil is offshore Guyana.
“We got Cabinet approval for a French company to do a reservoir audit. Something we should have done a long time ago. I’m happy we will start this soon. What we’re going to do as the government, is to have our independent consultant look at all the data that is available and then do an assessment of our resources offshore.”
“So, we too will be in a position to say yes, its 11.6 million barrels. Or its 10 or its six, or 13 or 15. So we’re going to do our independent assessment, in keeping with the license of course,” the Minister said.Based on the information that was provided to the Ministry by Exxon, however, he revealed that there had been a marginal increase in resource estimates for how much oil Guyana currently holds offshore in the Stabroek block.
“We’ve had a minimal increase in resources. We’ve moved to 11.6 billion barrels of oil equivalent, offshore in the Stabroek block. And that by itself is a significant find. Namibia, they’re saying is a significant find. And I agree too, but its only about four to five billion. But they’re saying its significant.”
“Compare that with Guyana, 11.6 billion barrels. And counting. It will increase, because Exxon is still doing exploration. We will have exploration in the other blocks offshore Guyana. And we are going to issue the license to the bidders that bid during the bid round,” he further explained.
The Stabroek Block is 6.6 million acres (26,800 square kilometres). Exxon, through its local subsidiary Esso Exploration and Production Guyana Limited (EEPGL), holds 45 per cent interest in the block, Hess Guyana Exploration Ltd had had 30 per cent interest, which it recently sold to Chevron and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.
