Xom oil Discovery could create tensión between Guyana, Venezuela

Yesterday, oil giant Exxon Mobil Corp. (NYSE: XOM) announced an oil discovery on the 6.6 million-acre Stabroek Block, offshore Guyana. If proven commercially viable, the Liza-1 find could “finally put Guyana on the map,” but it has the potential to create tension between Guyana and Venezuela,” according to Wood Mackenzie. Time is needed to evaluate size and commercial potential of the find, but the well, drilled by ExxonMobil affiliate Esso Exploration and Production Guyana Ltd., encountered over 295 feet of “high-quality oil-bearing” sandstone reservoirs, and is the first oil discovery made in Guyana. The find follows two previous unsuccessful wells drilled by CGX Energy and Repsol in 2012. In a note following the ExxonMobil announcement, Wood Mackenzie researchers said the find could create tension between Guyana and Venezuela as “Venezuela has historically laid claim to the western two-thirds of Guyana. While the Liza-1 discovery lies in uncontested waters, a portion of the Stabroek Block extends into territory claimed by Venezuela,” they reported.  More…