Stabroek Block

Stabroek Block
Name	Stabroek Block
Country	Guyana
Region	Atlantic Ocean
Operator	ExxonMobil
Partners	Hess Corporation, CNOOC Limited
Discovery	2015
Start of production	2019
Estimated reserves	~11 billion barrels

Stabroek Block. The Stabroek Block is a prolific offshore petroleum exploration block located in the Guyana-Suriname Basin, approximately 120 miles offshore Guyana in the Atlantic Ocean. Since the landmark Liza-1 discovery in 2015 by a consortium led by ExxonMobil, it has become one of the world's most significant oil and gas frontiers, transforming Guyana's economic prospects. The block is operated by ExxonMobil in partnership with Hess Corporation and CNOOC Limited under a Production Sharing Agreement with the Government of Guyana.

Overview

The Stabroek Block encompasses an area of 6.6 million acres (26,800 square kilometers) in the deep to ultra-deep waters of the Guyana-Suriname Basin, a geological province known for its hydrocarbon potential. The block's development is governed by a Production Sharing Agreement signed in 1999 and amended in 2016 between the consortium and the Government of Guyana. The rapid succession of discoveries, beginning with the Liza field, has positioned the block as a major global source of new, low-cost oil supply. Key projects such as Liza Phase 1, Liza Phase 2, and Payara have established a multi-phase development strategy, with production managed through floating production, storage, and offloading (FPSO) vessels.

Discovery and Development

The exploration history of the Stabroek Block was defined by decades of inactivity until ExxonMobil acquired the rights and drilled the transformative Liza-1 exploration well in 2015, which encountered a significant oil-bearing sandstone reservoir. This success triggered an unprecedented exploration campaign, leading to further major finds including Payara, Liza Deep, Yellowtail, and Uaru. The Liza Destiny FPSO vessel initiated first oil in December 2019, marking Guyana's entry as a petroleum producer. Subsequent development phases have been sanctioned rapidly, with the Liza Unity FPSO commencing production for Liza Phase 2 in 2022 and the Prosperity FPSO slated for the Payara project.

Geology and Reserves

The block's hydrocarbons are found in Upper Cretaceous sandstone formations within stratigraphic traps, part of a world-class turbidite system in the Guyana-Suriname Basin. The primary reservoirs are high-quality, porous sandstones deposited in deep-water environments, sealed by overlying shales. As of 2024, the consortium has announced over 30 discoveries, with estimated gross discovered recoverable resources exceeding 11 billion barrels of oil equivalent. Notable fields contributing to this resource base include the Liza complex, Snoek, Ranger, Longtail, and Whiptail. The U.S. Geological Survey has previously identified the basin as having high resource potential, which the Stabroek Block has dramatically confirmed.

Production and Infrastructure

Current production originates from the Liza Destiny and Liza Unity FPSO vessels, with a combined capacity exceeding 400,000 barrels of oil per day. The upcoming Prosperity FPSO for the Payara project and the One Guyana FPSO for the Yellowtail development will significantly increase output, with total block production projected to surpass 1.2 million barrels per day by 2027. Infrastructure includes subsea production systems, umbilicals, risers, and flowlines connecting wells to the FPSOs. Crude oil is exported via shuttle tankers, primarily to refineries in the Americas, Asia, and Europe. The consortium plans to deploy up to ten FPSO vessels to develop the full resource.

Economic and Geopolitical Impact

The Stabroek Block's development has fundamentally altered the economy of Guyana, with revenues funding national development under the Natural Resource Fund Act. The influx of capital has spurred growth in Georgetown and investments in sectors like infrastructure and education, though it has also raised concerns about Dutch disease. Geopolitically, the discoveries have intensified a long-standing border dispute with Venezuela over the Essequibo region, leading to heightened tensions and diplomatic interventions. The block has also shifted global oil trade flows, attracting increased interest from major energy companies and trading houses like Shell and Vitol in the Guyana-Suriname Basin.

Environmental and Social Considerations

The rapid offshore development has raised significant environmental concerns, including risks of oil spills in a sensitive marine ecosystem near the Amazon Reef and impacts on fisheries. Groups like the World Wildlife Fund have called for stringent safeguards. Flaring regulations and carbon intensity of production have been points of contention between the government, the consortium, and civil society organizations. Socially, the boom has led to rapid urbanization, inflationary pressures, and debates over equitable revenue sharing and local content policies, as managed by Guyana's Ministry of Natural Resources. The government's adherence to the Extractive Industries Transparency Initiative standards is seen as a critical factor for sustainable management.

Category:Oil fields in Guyana Category:ExxonMobil Category:Atlantic Ocean