Significant oil deposit found offshore Guyana

The Exxon Mobil Exploration Company on Thursday announced the discovery of significant oil deposit off the coast of the South American country Guyana.

A well exploration in the Stabroek block resulted in a "world-class" discovery with a recoverable resource of between 800 million and 1.4 billion U.S. dollars oil-equivalent barrels, according to the company.

Liza-2 well, where the oil was found, was drilled to a depth of 5,475 meters in 1,692 meters of water, and it hit more than 58 meters of oil bearing sandstone reservoirs, the Exxon Mobil said.

The well is approximately two miles from the Liza-1 well, where "high-quality oil from the same high-porosity sandstone reservoirs" was found in 2015.

The Exxon Mobil said the data from the Liza-2 well is currently being assessed.

"We, along with our co-venturers, look forward to continuing a strong partnership with the government of Guyana to further evaluate the commercial potential for this exciting prospect," said Steve Greenlee, the president of Exxon Mobil Exploration Company.

The Stabroek block spans some 26,800 square kilometers about 193 kilometers offshore Guyana.

The Exxon affiliate Esso Exploration and Production Guyana Limited holds 45 percent interest in the block, while Hess Guyana Exploration Limited holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent. Endit