Generation and migration of hydrocarbons in the Maracaibo basin, Venezuela: An integrated basin study.
Authors: Suhas Talukdar, Oswaldo Gallango, Marcel Chin-A-Lien,
Published in Advances in Organic Geochemistry, 1985, Part I, Petroleum Geochemistry – Proceedings of the 12th International Meeting on Organic Geochemistry. Jülich, Germany, 16-20 september 1985. Page 261 – 280.
A landmark publication, novel in 1985.
Integrating all previous studies, done by the other international companies (pre-nationalisation) and affiliates of Petroleos de Venezuela.
With our own new investigations and developed insights.
On petroleum geology, generation, migration, well and basin modelling; organic geochemistry, biomarkers, steranes, terpanes, demethylated hopanes C29; oil-oil, oil-source rock correlations and exploration and production.
It was based on 2 years of applied research. Has evolved into a classic reference on Maracaibo Basin, with a respectable citation index (160 Google Scholar citations).
Our scientific guide and friend during this study was prof.dr. John M. Hunt (1919-2005) from Woods Hole Oceanographic Institution, Massachusetts, M.I.T., USA.
Pioneer and writer of the classic reference textbooks Petroleum Geochemistry and Geology, 1979 and 1996. Our study, article and findings on generation, migration and accumulation were also used and included in his 1996 updated book.
John, thank you so much for your mentorship and superb scientific guidance while unveiling us the secrets of petroleum geochemistry, during 1982 – 1984.
Also for revising the 400 pages of our original report:
” This looks and it weighs as a very fat Ph.D. thesis, to revise ” was your first astonished remark.
” John, no problem, we will book you another week in your favourite Tamanaco hotel, we replied “, somewhat surprised.
For sculpturing, brainwashing and transforming our mindsets ?
Into integrated petroleum explorationists – basin modellers – organic geochemistry – generation – migration professionals: becoming better explorationists.
Thank you !
The history of hydrocarbon generation and migration in the Maracaibo Basin, Venezuela, is closely related to its stratigraphic, structural and tectonic evolution during the Cretaceous and Cenozoic times. Geochemical evaluation of the possible source rocks within the Cretaceous and the Tertiary sequences indicates that the argillaceous limestones and calcareous shales of the La Luna Formation (Cenomanian-Coniacian) are the most important source rocks in the basin. These rocks contain organic carbon ranging from 1.5 to 9.6% (c. original TOC 2.5–10.8%), have fluorescent amorphous marine, type II organic matter (oil prone) and have in the immature stage a H-index of 700 mg HC/g TOC and a H/C ratio of 1.5. The beginning of the oil window in these rocks occurs at a relatively low thermal maturity (Lopatin TTI about 10) and the peak of oil generation corresponds to a TTI value of 35.
Geochemistry of oils from the different reservoirs (Cretaceous, Paleocene, Eocene and Miocene beds), and oil-oil and oil-source rock correlation studies based on biomarkers have identified three genetic types of oil in the basin: a marine type essentially derived from the La Luna source, a terrestrial type possibly originating either from the Cretaceous Lisure shales or the Paleocene shales, and a third type derived from the mixing of the first two types. The marine type oil is distributed extensively throughout the basin whereas the terrestrial as well as the mixed marine and terrestrial types are found only in the southwestern part of the basin. The marine type oils have been further subdivided based on their alteration and maturity.
Reconstruction of the hydrocarbon generating areas at different geological times using TTI-maturity diagrams indicates that the generation of oil and gas in the basin took place during two periods; the first phase occured during the Middle to Upper Eocene times in the northeastern part of the basin, while the second phase occured during the Upper Miocene to Recent times in the central, western and southern parts of the basin.
Based on organic geochemical and sedimentological characteristics, it is proposed that primary migration of oil from the La Luna source rocks took place by expulsion of hydrocarbons through abundant microfractures developed by the pore fluid overpressure during hydrocarbon generation. Mass balance considerations suggest that the expulsion probably occurred as a hydrocarbon single phase and the expulsion efficiency for oil in La Luna source rocks should have been very high (30–50%).
Taking into consideration the development of oil and gas kitchens through time, the paleostructures at the time of hydrocarbon generation, and the characteristics of oils, the migration history of the oil and gas generated from the La Luna source has been outlined. Mixing of oils, derived at different times (Eocene and Miocene-Recent) from the La Luna source of different areas, appeared to have taken place in Block IV, Block 11, Lago-Lamar, Motatan and Bolivar Coastal fields.
generation of petroleummigration of petroleumintegrated basin studyMaracaibo BasinLa Luna source rocksoil-oil and oil-source rock correlationTTI maturity modellingexpulsion of hydrocarbonsexpulsion efficiency
1) Notes of Marcel Chin-A-Lien on Offshore Suriname Potential
When I served Staatsolie as an exploration consultant in Paramaribo, for offshore Suriname I had the privilege to study and promote this promising prospective area to Tullow Oil. The PSC was diligently negotiated and signed.
Araku area and prospect was also one of my own favourites. My educated guess is that Araku could have been the first giant oil discovery offshore Suriname (P.D. Resulted to be a bone dry hole).
In december 2009 I presented ” New Outlook for the Suriname NW Offshore ” in a congress in Trinidad (Energy Caribbean 2009 Conference, Trinidad, 7-8 December 2009).
With the whole gamut of leads, prospects, play types, basins, in tandem with the newly designed license areas.
This as a sound, comprehensive, integrated scientific subsurface and business development playground basis. To promote the high prospectivity of offshore Suriname. As part of the strategy and continuous effort of Staatsolie since decades ago.
I had the great honour to serve Staatsolie for an extended period. Herewith also obtaining the opportunity to contribute to Suriname. Sranankondre in Sranan Tongo.
The presentation was based on my own grounded re-interpretation, re-evaluation and integration of all previous subsurface reports and information of the multinationals. Resulting in a whole both new and positive outlook on the petroleum potential of NW offshore. My own point of view.
Novel and repetitive high impact leads, traps, prospects, play types, mini- and Jurassic basins were unveiled, mapped and highlighted.
The presentation and its content, fortunately was rated by the attendees as excellent (to brilliant).
Soon following many IOC’s, such as Tullow showed tangible interest in urgently obtaining certain areas presented. Especially after I showed, discussed and promoted the high potential of the prospects on my workstation with their exploration manager. F2F, B2B. These areas were negotiated and diligently covered with PSC’s. Blocks 47 (Confined Fan System) and 54 (Araku prospect)
In-house Staatsolie and previous to the negotiations we had already analysed, determined and fenced the level playing landscape with the boundaries for the PSC clauses and work program we wished to obtain. This within others based on the size of the prospects and an accompanying valuation and cash flow modelling of the expected petroleum volumes of the prospects and license area.
The present day licensed area covers also part of the north-eastern area. The Demerara High (some 40,000 km2), since long forgotten and mainly neglected because of 4 dry holes. Such as well Demerara A2-1 drilled 39 years ago, in 1978.
Following my interpretation of the petroleum potential of the Demerara High (that incorporates a Jurassic basin and probably also Carboniferous sediments, inverted in Albian time) with the old 2D available, I created awareness, promoted and presented it in Staatsolie to the BOED. To obtain a budget for a modern 2dD survey. Following I designed the specifics for the acquisition area and program and for the processing sequence. This was later acquired and executed.
It is now an authentic joy to see that almost the whole area, promoted since 9 years ago in Trinidad, is now under license covered by 12 IOC’s and covering more than half of the offshore area of 180,000 square km.
Covered by some 65,000 km of 2D and 17,000 square km of 3D (as of July 2013).
This thanks to the diligent, intelligent, continual updating, upgrading and pro-active promotion of offshore, by the very competitive group of professionals and specialists in Staatsolie.
A real big achievement. Congrats. Fersteri !
Based on the unique petroleum system(s) in this basin, one can only be convinced that the Guyana Basin is an awakening oil giant.
Clearly evidenced, first in 1965 by the onshore giant Tambaredjo Oil field. Fifty years later followed by the recent giant elephant discoveries of ExxonMobil in nearby Guyana.
1.1)” Birth Announcement ” of a Massive Oil Region:on behalf of ” Guyana Basin “.
In 1965 Guyana Basin proudly announced the birth of its first giant field (unnoticed by the majority of explorers) in onshore Suriname:
Weight: Billion barrel oil field
Father: Geological and Mining Service, GMD (ir. Hugo Coleridge, discoverer). Paleocene, Saramacca Fm. sands at a depth of 150 – 425 metres. Also in Miocene, Coesewijne Fm. sands.
Mother: Canje Formation, U-Cretaceous, Cenomanian source rock (extended Tethys Ocean, Continental Margin family of La Luna, Querecual and Naparima Hill formations).
The newly born and expelled petroleum at a young age already managed to travel (migrate) all alone. Using only its genetic buoyancy instinct. As navigator in the dark, unknown subsurface.
Covering a super long distance (ca. 200 km – ” Olympic Gold Medal, Neogene-Long-Distance-Walking “) while pro-actively searching for a suitable home (reservoir). That could provide a safe, leakproof roof (Paleocene shale) and spacious, interconnected pores as confortable habitat. Finally well-received in the fluvial-deltaic Palaeocene T-sands and Miocene Coesewijne, in the most up-dip part of the basin.
The ultimate spot, where nowadays one would dare to wildcat with a first oil well. As a most sophisticated and learned digital explorationist. With all the present day information available on the workstation.
In the prolific Guyana Basin.
A most adventurous migration history, still unlocked and untold by Mr. Tambaredjo.
When and who did you visit since you left the kitchen of mother Canje Fm.? Where did you temporarily camp on route? Which stratigraphic fairways and tectonic shortcuts did you take? Who in addition facilitated your long voyage. How much weight did you gain (lose), decending from 45 to 16 degrees API and 500-cp, low vanadium and sulphur oil ? Did you earlier split up with your family, if yes, where are they now located. What was the time schedule of your voyage? When did you depart and arrive? Do you represent only one generation or multiple generations? As a migrant, from – 5000 m. to -180 m.?
Before obtaining definite shelter. Voyaging from mother’s Canje Formation kitchen deep offshore towards Palaeocene T-sands.
Migration history easily unveiled ??
Following 18 will all give you a geologically democratic, interesting and most valid answer. The convincing answer. Part of…
Accompanied by splendid migration maps and traffic arrows, indicating the petroleum where to walk. Like a Tom Tom Navigator. Authentic geo-art using all the colours of the rainbow, to make migration and accumulation more pleasant.
Do not forget to analyse why the provided pre-drill “truth” unfortunately proved to be “false”, post-drill and post-mortem.
After drilling the bone and astonishing bone dry, some 200 million US$ hole(s). Without a single ppm of petroleum. The mud loggers and mud logging unit had a most boring time. Such as in…..guess which one(s).
Where myself I was happy to learn the best lessons in my career. This as I have been in charge of having to write and present them for more than a decade. A close look in the mirror. This time without make-up, without tricks and treats.
” High impact discovery well to-be ” ?
B. Discovered by accident while prospecting for water (….very sorry about that big mistake….).
C. Carrying out a water-drilling project to supply water to a nearby school and village (….our sincere excuses…but…unfortunately we found a giant oilfield….instead of the clean and abundant water we promised you all for your little school in Tambaredjo village).
D. I am in production since 1982. About 115 MMbo produced from 3 oil fields, 87 MMbo remaining reserves, 17,000 bopd production currently.
E. I do have an intrinsic preference for structural basement highs and additional structural elements. The Calcutta Uplift and the E-W Tambaredjo, NE-SW Broederschap, NE-SW Weg near Zee major fault systems. Basement-rooted (and Cretaceous-post-Albian inversion originated) faults that terminate in the Eocene and Miocene.
F. In the offshore area: Find out by yourself. I do not reveal all my secrets so easily.
Exploration tip and discovery moral??
So now and then, dare to drill pro-actively for water, if you wish to find oil (elephants).
As a matter of fact one most often pro-actively explores for oil, and finds only water (euphemistically called “technical discovery wells”, the proof for existence of reservoir rocks).
Birth of its second and third giant fields was announced by the arrival of Guyanese twin-sisters Liza and Payara. In 2015 and 2017.
The continuing story will most certainly involve many, many more giant discoveries in the near future.
Brothers, sisters, cousins and nephews of Mr. Tambaredjo, Mrs. Liza and Mrs. Payara.
Such as also in switi Sranankondre.
Guyana Basin, Awakened in 1965.
Since 2015, 50 years later, accelerating and entering a new, prosperous and exiting booming petroleum cycle.
1.2) ” To Whom it May Concern”
Srananman, ala mala pasensi, nog ff, next december ?
Bigi pokoe en kaseko op Vrijheidsplein, wowww !
Waarde neef Errol, fa waka?
Begin s.v.p. alvast een mooi olie ontdekkingsliedje te componeren. In Sranantongo. Kaseko style. En reserveer ook een datum voor de primeur tijdens het optreden met je gezellige band. Let me know. Thx in advance.
South South West !
Deel van mijn recente antwoord – email aan mijn zeer lieve oude tante in Switi Sranan: over olie:
” Lieve tante,
Om uw vraag te beantwoorden.
Het grote oliefonds waar u het over heeft in uw email. Dat ik u indertijd in 2009 had voorspeld, de olie ?
Terwijl het gras groeit sterft het paard, schrijft u zo vrolijk ?
Die olie komt zoals eerder beloofd nu wel heel spoedig.
Misschien wel samen met Sint en Piet, dit jaar nog dus, hopelijk:
Maar alles eerst keurig op een rijtje.
Eerst de grote olie Vondst.
Daarna het grote olie Fonds (….oliefonds, waar u het over heeft).
All-In, All-2-You, dus met al het goede en ook de verhoogde AOW, die erbij hoort.
Voor ala Sranansma na switi Sranankondre.
Ik ben slechts een hele simpele exploratie petroleum geoloog.
Die voortdurend snuffelt naar olie, al 40 jaar lang, op 4 continenten.
Dus wat ik zeg, schrijf en beweer is niet zomaar uit de lucht gegrepen.
Niet gegrepen uit de hedendaagse iCloud.
Maar gelukkig gebaseerd op grondige bestudering en op feiten.
Die reuze olie vondst in Sranankondre is zeer zeker op komst.
Nog ff pasensi tante.
Ik hoop dat in december ala Sranansma bigi pokoe en kaseko kunnen gaan dansen*.
Ala sma. Zelfs die met bigifutu.
De bigisma, de bigiman’s, de bigitaki’s, de bigifisi’s, de bigifasi’s, de bigimemre’s, de bigidoin’s, de bigidagu’s, de bigi-ai’s, vooral de bigi taki’s.
Gezamenlijk en gebroederlijk met de bigi-popokaisneki, bigitodo, bigi-watradagu, op bigibigi dei.
Op het Vrijheids plein. Voormalig Gouverneurs plein.
Op de pier van Torarica. En tevens op Bigiwowoyo.
Zet uw kotomisi maar alvast klaar.
Voor de bigi konfriyari, fesadei en opo opo fesa.
Om de olie ontdekking te vieren. Suriname, Sranankondre.
Bun furu. A no spotu….Moro mofo.
Made in Sranankondre, by Canje Formation.
Overigens, Guyana ? Poti sma ??
Zoals men aldaar pleegde te zeggen over de naaste buren ??
Fos’fosi, fosten. Voor 2015.
Tachtig (80) miljard US$ gross is Guyana’s recente reuze olie vondst waard.
Tachtig maal het jaar budget waar de Surinaamse regering en haar ministeries over beschikken voor switi Sranan, per jaar.
Guyana? Poti sma ??
Nnn..Nooit meer zeggen.
Fos’fosi, fosten. Voor 2015.
Binnenkort, nog ff pasensi tangitangi.
Poti sma nanga poti Kondre??
Tan bun ala famiri, God Bless You All.”
Brief van MCAL aan zijn lieve, oude tante na switi Sranan Kondre.
1.Reference: www.epmag.com. February 8, 2017 – Velda Addison, Senior Editor, Digital News Group Hart Energy &
2. Re: www.tullowoil.com – August 2017
2) Atlantic Crossover: Tullow Keeps Focus Offshore South America
Velda Addison Senior Editor, Digital News Group Hart Energy Wednesday, February 8, 2017 – 2:00pm
Africa-focused Tullow Oil is stepping up its plans offshore South America after divesting interests in its Norwegian assets and exiting other areas.
The London-based E&P, which operates the TEN fields and its flagship Jubilee Field offshore Ghana, said it plans to drill the Araku prospect offshore Suriname, the smallest country in South America, in second-half 2017.
“This prospect is a large structural trap which has a resource potential estimated at over 500 MMbo [million barrels of oil],” the company said Feb. 8 in its 2016 full-year results. “It has been significantly de-risked by a 3-D seismic survey carried out in 2015, which identified geophysical characteristics that are consistent with potential oil or gas effects in the target reservoirs.”
Tullow is among the oil and gas companies that have kept some new frontiers in their exploration schemes, despite unfavorable market conditions that caused many to slow exploration spending. In 2016, Tullow halted frontier exploration efforts in Ethiopia, French Guiana, Greenland, Guinea, Madagascar and Norway.
“As we focus our free cash flow primarily on reducing our debt, capital discipline remains critical,” said CEO Aidan Heavey, who will take over as chairman when Paul McDade becomes CEO. “We have made excellent progress with our East African developments and are building a high-quality exploration portfolio to grow our business.”
With more than 25 exploration wells drilled offshore, Suriname has been described by state oil company Staatsolie as “virtually underexplored.” Commercial production has only come from onshore fields, which together produce about 17,000 barrels per day (bbl/d) of oil.
Tullow has interests in two licenses offshore Suriname covering a total of 10,849 sq km (4,189 sq miles). These include Block 54, where the Araku prospect is located, and the nearby Block 47. A drop core survey spanning the blocks was completed last year.
The company has said its Jubilee play could expand from West Africa across the Atlantic Ocean to Block 47. That was the case for Tullow offshore French Guiana, where the Zaedyus exploration well hit oil in two turbidite fans five years ago. At the time, Tullow said the objective of the well was to test whether the Jubilee play was mirrored on the other side of the Atlantic.
Although the oil discovery offshore French Guiana opened a new hydrocarbon basin and helped lower exploration risks in nearby Suriname and Guyana, Tullow eventually shifted focus to Suriname after an unsuccessful drilling campaign in 2013. Other Suriname players include Apache Corp. (NYSE: APC), Cepsa, Chevron Corp. (NYSE: CVX), DEA, Kosmos Energy, Noble Energy Inc. (NYSE: NBL), Petronas, Statoil ASA (NYSE: STO) and Staatsolie, which has invited others to farm in to blocks B and C—both located closer to the shoreline in water depths of up to 30 m offshore Suriname.
Citing a 2012 U.S. Geological Survey report, Staatsolie said the Guyana-Suriname Basin has an estimated resource potential of 13.6 Bbbl, placing it among the world’s largest basins in terms of prospectivity.
Many are already closely watching activity west of Suriname–offshore Guyana–where ExxonMobil’s exploration work in the Stabroek Block has pointed to recoverable resources of more than 1 Bboe.
Tullow, which has interest in two licenses offshore Ghana, said it plans to acquire 3-D seismic data over the offshore Orinduik license, which is updip of ExxonMobil’s Liza oil discovery.
Elsewhere offshore South America, Tullow said it began a 2,500-sq km (956-sq mile) 3-D seismic program offshore Uruguay. The company aims to “capture data over high-quality leads identified in Block 15 in the Pelotas Basin.”
In addition, Tullow said it plans to acquire another 680 km (423 miles) of 2-D seismic data offshore Jamaica. This follows the completion of a drop core and seep study in the Walton Morant blocks, which identified a live oil seep, the company said.
While the company works to build its exploration portfolio, it is still coping with the downturn’s aftermath.
Tullow reported an operating loss of $754.7 million for 2016, down 31% from 2015’s loss of $1.09 billion. The company’s exploration write-offs totaled $723 million in 2016.
Lower oil prices hit revenue, which dropped 21% to about $1.3 billion, despite bringing the TEN fields into production. Working interest production was down 9% for the year, averaging 67,100 boe/d.
“The impact of first oil from the TEN fields was offset by reduced production from the Jubilee Field as a result of the Turret Remediation Project, declines in U.K. and Netherlands gas production, as well as reductions across the nonoperated West Africa portfolio,” Tullow said.
The company reported capital investment of about $900 billion in 2016, mostly for development activities in Africa.
“2016 is likely to mark the low tide point for Tullow, with production set to increase in 2017 into a rising oil price environment,” Mirabaud Securities analysts said in a Reuters article.
The analysts added that Tullow should be able to reduce its debt pile, which increased to $4.78 billion by year-end 2016 up from $4.02 billion, primarily due to TEN expenses.
Moving forward, Tullow said it intends to control capex, dropping spend to $500 million in 2017 from $900 million last year. Exploration and appraisal spending will be limited to about $125 million.
From: www.epmag.com. February 8, 2017 – Velda Addison, Senior Editor, Digital News Group Hart Energy
France to ban all new oil and gas exploration in renewable energy drive.
‘Ecological transition’ minister says law will be passed later this year.
The minister, previously famed in France for his environmental activism and nature documentaries, also outlined proposals to increase the taxation on diesel and to “make decisions faster” to curtail pollution.
Mr Macron said he was opposed to exploration for gas and favoured a ban on fracking during his election campaign, particularly in the overseas territory of French Guiana.
But Mr Hulot was among those warning that any ban would trigger lawsuits from energy companies and saying change must be imposed gradually.
Around 75 per cent of France’s electricity is currently provided by nuclear power stations, with the industry employing around 200,000 people and led by state-owned EDF.
A law was passed last year to reduce the nuclear proportion to 50 per cent by 2025, sparking controversy over potential job losses and the closure of up to 20 reactors.
Mr Macron reinstated his commitment to the law last month but has evaded concrete targets for the ultimate aim of making France run completely on renewable energy.
The President is also planning a huge renovation programme for French homes to reduce energy consumption, cut carbon dioxide emissions, reduce energy poverty and create jobs.
He and Mr Hulot discussed renewable energy schemes and global warming with Arnold Schwarzenegger, the actor and former Governor of California, as part of his trip to France on Friday.
Mr Schwarzenegger said he was honoured to speak to Mr Macron and ministers about “how we can work together for a clean energy future” and was seen posing with a T-shirt reading “Make Our Planet Great Again” with Mr Hulot.
The Hollywood star has publicly sparred with Donald Trump, a fellow Republican and Apprentice host over climate change and the President’s decision to withdraw the US from the historic Paris accords.
France was among the countries heavily criticising the decision, with the government posting an annotated White House video on social media refuting the President’s claims that the agreement was a “bad deal” for the US.
Lizzie Dearden @lizziedearden Saturday 24 June 2017 11:42 BST101 comments
What Guyana needs to know about ExxonMobil – Part 4: ExxonMobil shows two faces to investors, partners
In one way or the other, Guyana has certainly paid the price for its ignorance.
It has paid the price for its failure to conduct due diligence on several companies, for its failure to monitor the operations of entities; for its failure to craft air-tight contracts/agreements which can safeguard the nation against the abusive and greedy nature of some mega-corporations. It has paid for failing to learn from the mistakes of other nations.
With such a wealth of experience in making all the wrong moves for one reason or the other, Guyanese are in their right to ask themselves a most salient question when facing an oil giant like ExxonMobil: CAN THEY BE TRUSTED?
In recent weeks, Kaieteur News embarked on a series of articles which served to enlighten the citizenry on all they need to know about a company with which Guyana is going to sign a life changing contract.
Through detailed research, this publication has presented the facts on how ExxonMobil seems to have a pattern of entering weak nations with non-transparent governments.
All are rich in oil but their people are still no better off today. It was also exposed how ExxonMobil has a history of underpaying royalties in territories it operates. Its own mother country, the United States, was no exception from this type of behaviour.
In this installment Kaieteur News will show how ExxonMobil is now facing several lawsuits, including one for allegedly deceiving its shareholders in the US.
According to www.theguardian.com, (https://www.theguardian.com/business/2017/may/31/exxonmobil-climate-change-cost-shareholders )
ExxonMobil was forced to be more frank with its shareholders regarding the effect climate change will have on the operations and profitability of the company.
The report by the Guardian notes that Climate Change poses a real threat to the sustainability and the manner in which ExxonMobil will continue to operate its business in the future. Climate Change, the article notes, is a “material financial threat” for ExxonMobil.
But that is not all. ExxonMobil is currently under investigation by the Offices of the New York Attorney General and Massachusetts for being deceitful about climate change, something the company, of course, has denied.
According to the www.nytimes.com, (https://www.nytimes.com/2015/11/06/science/exxon-mobil-under-investigation-in-new-york-over-climate-statements.html) , an investigation is being carried out to determine whether the company has been truthful to the public on the issue of climate change or if it deceived its investors about the impact the challenging issue can have on the business.
Attorney General Eric T. Schneiderman issued a subpoena to Exxon Mobil, for extensive financial records, emails and other documents that would be helpful to the investigation, the NY Times reported.
The media outlet said, “The investigation focuses on whether statements the company made to investors about climate risks as recently as this year were consistent with the company’s own long-running scientific research.”
“The inquiry would include a period of at least a decade during which ExxonMobil funded outside groups that sought to undermine climate science, even as its in-house scientists were outlining the potential consequences — and uncertainties — to company executives.”
In short, ExxonMobil was actually paying lobbyists to deny the impact of climate change.
ExxonMobil has been accused over the years of funding certain groups and government officials/parties to promote disinformation about the effects of climate change. It has of course denied this to the end, but the media reports on this matter are overwhelming.
The Guardian (www.theguardian.com) is just one media site which has placed this issue in the spotlight. The news entity has reported that ExxonMobil has been funding anti-climate groups such as the American Legislative Exchange Council (Alec). It based this conclusion on tax records. (https://www.theguardian.com/environment/2015/jul/15/exxon-mobil-gave-millions-climate-denying-lawmakers)
In addition to the aforementioned, civil proceedings have been filed against ExxonMobil by some of its own shareholders who feel deceived by the company regarding the truth about climate change and the toll it will take on the business’s fortunes as most nations are being encouraged to move in the direction of cleaner sources of energy.
According to www.insideclimatenews.org. (https://insideclimatenews.org/news/18112016/exxon-climate-change-research-oil-reserves-stranded-assets-lawsuit), the deception by ExxonMobil led to the investors paying inflated prices for Exxon stock and subjected them to financial losses because the company knew the value of its oil reserves was less than what it was telling investors. This was also noted in the lawsuit which was filed in a Texas federal court this year. (see link for full lawsuit: https://www.documentcloud.org/documents/3215695-Class-Action-Exxon-Complaint.html) .
In the court action, the plaintiff is calling for compensation for all damages sustained as a result of the defendant’s wrongdoing, in an amount to be proven at trial, including interest thereon.
The plaintiff is of the firm belief that, “During the Class Period, as detailed herein, Defendants made false and misleading statements and engaged in a scheme to deceive the market and a course of conduct that artificially inflated the price of Exxon common stock and operated as a fraud or deceit on Class Period purchasers of Exxon common stock by misrepresenting the value of the Company’s business and prospects by overstating its earnings and concealing the significant defects in its internal controls.”
The lawsuit goes on to state, “As Defendants’ misrepresentations and fraudulent conduct became apparent to the market, the price of Exxon common stock fell precipitously, as the prior artificial inflation came out of the price. As a result of their purchases of Exxon common stock during the Class Period, plaintiff and other members of the class suffered economic loss, i.e, damages, under the Federal Securities Laws.”
Adding to ExxonMobil’s climate change woes, is the fact that even the Security Exchange Council (SEC) has also launched an investigation in an effort to ascertain if the oil king has been completely honest with investors about climate risks and accounting issues concerning its reserves.
With the aforementioned in mind, it would not be irrational for Guyanese to urge Government officials to be wary of the nature of the oil king it is dealing with and to act cautiously.
It would not be unreasonable for Guyanese to urge the Government to monitor the operations of the entity; to craft an air-tight contract/agreement that will safeguard the nation against the abusive and greedy nature of this mega-corporation.
It would not be unreasonable to call on the Government to learn from the painful and irreversible mistakes made by other nations.
Failure to do so, would surely lead the nation into a position where 10 years later, it would be worse off than it is today.
From: www.kaieteurnewsonline.com – June 28th – 12:55 AM
” All-in-1 Consultant, Available-to-Serve-You.
For grounded, vintage stewardship to successfully find lots of oil, mineral resources, develop your business and get sustained value for money ?
See <Contact & Contract Me> at firstname.lastname@example.org “.
Doei, salu2, ciao, até logo, grüssen, cordialement, salut, добрый день, ajoo, tur kos bon mi dushi hendenan na Switi Sranan i mi famiri na switi Korsou, tan bun allamala !
The Liza Phase 1 development continues to rapidly progress, with the commencement of development drilling offshore Guyana.
Development drilling began in May for the first of 17 wells planned for Phase 1, laying the foundation for production startup in 2020.
Liza Phase 1 is expected to generate over $7 billion in royalty and profit oil revenues for Guyana over the life of the project. Additional benefits will accrue from other development projects now being planned.
Liza Phase 1 involves the conversion of an oil tanker into a floating, production, storage and offloading (FPSO) vessel named Liza Destiny, along with four undersea drill centers with 17 production wells. Construction of the FPSO and subsea equipment is under way in more than a dozen countries.
“The Longtail discovery is in close proximity to the Turbot discovery southeast of the Liza field,” said Steve Greenlee, president of ExxonMobil Exploration Company. “Longtail drilling results are under evaluation. However, the combined estimated recoverable resources of Turbot and Longtail will exceed 500 million barrels of oil equivalent, and will contribute to the evaluation of development options in this eastern portion of the block.”
The release said that ExxonMobil is currently making plans to add a second exploration vessel offshore Guyana in addition to the Stena Carron drillship, bringing its total number of drillships on the Stabroek Block to three. The new vessel will operate in parallel to the Stena Carron to explore the block’s numerous high-value prospects.
The release said that the Noble Bob Douglas is completing initial stages of development drilling for Liza Phase 1, for which ExxonMobil announced a funding decision in 2017.
Phase 1 will comprise 17 wells connected to a floating production, storage and offloading (FPSO) vessel designed to produce up to 120,000 barrels of oil per day.
First oil is expected in early 2020. Phase 2 concepts are similar to Phase 1 and involve a second FPSO with production capacity of 220,000 barrels per day. A third development, Payara, is planned to follow Liza Phase 2.
500,000 bpd forecast based on production from Liza, Payara and Pacora.
Oil production forecast 500,000 + bbls/day.
Oil production in Guyana is expected to surpass the 500,000 barrels per day mark by the end of the next decade based on production from several offshore developments.
OilNOW recently sat down with ExxonMobil Guyana’s Senior Director, Public and Government Affairs, Kimberly Brasington for an outline of what that projection is based on, and this is what she had to say;
2) ExxonMobil makes FID on Liza development offshore Guyana HOUSTON, June 16, 06/16/2017, By OGJ editors
ExxonMobil Corp. has made a final investment decision on the first phase of development for Liza field 190 km offshore Guyana.
The company also reported results from the Liza-4 well, which the firm said encountered more than 197 ft of high-quality, oil-bearing sandstone reservoirs and will underpin a potential Liza Phase 2 development.
Gross recoverable resources for the 6-million-acre Stabroek block are now estimated at 2-2.5 billion boe, including Liza and the Liza Deep, Payara, and Snoek exploration wells (OGJ Online, Mar. 30, 2017).
The Liza Phase 1 development includes a subsea production system and a floating production, storage, and offloading vessel designed to produce as much as 120,000 b/d of oil. The FPSO contract was let to SBM Offshore NV late last year (OGJ Online, Dec. 20, 2016).
Liza field lies in 1,500-1,900 m of water. Four drill centers are envisioned with a total of 17 wells, including 8 production wells, 6 water-injection wells, and 3 gas-injection wells.
ExxonMobil last month let an engineering, procurement, construction, and installation contract to Saipem SPA for work on risers, flow lines, and associated structures and jumpers (OGJ Online, May 10, 2017). The contract also includes transportation and installation of umbilicals, manifolds, and foundations for production as well as water and gas injection systems.
Production is expected to begin by 2020, less than 5 years after discovery of the field. Phase 1 is expected to cost just more than $4.4 billion, which includes a lease capitalization cost of $1.2 billion for the FPSO facility, and will develop 450 million bbl of oil.
ExxonMobil submitted an application for a production license and its initial development plan for Liza field in early December. The development has received regulatory approval from the government of Guyana.
Esso Exploration & Production Guyana Ltd. is operator with 45% interest. Hess Guyana Exploration Ltd. has 30% and CNOOC Nexen Petroleum Guyana Ltd. 25%. Esso E&P Guyana also operates Canje and Kaieteur blocks offshore Guyana.
Drilling of the Payara-2 well on Stabroek is expected to commence in late June and will also test a deeper prospect underlying the Payara oil discovery.