<article><p class="lead">ExxonMobil encountered a rare setback after five years of drilling in the prolific waters off Guyana.</p><p>The Tanager-1 well, the first that the <a href="https://direct.argusmedia.com/newsandanalysis/article/2160598?keywords=guyana">US major</a> drills on the Kaieteur block, "encountered hydrocarbons but based on initial analysis it does not appear to be economic on a stand-alone basis," the company said.</p><p>Tanager-1, spudded 11 August, reached a depth of 7,633m (25,043ft).</p><p>"We will evaluate the data we have gained through additional tests and analysis," the company said. "We will continue exploration across our acreage offshore Guyana, including in the high-risk frontier areas such as the Kaieteur and Canje blocks."</p><p>ExxonMobil started crude production at the Liza 1 well on the deepwater Stabroek block in December 2019. <a href="https://direct.argusmedia.com/newsandanalysis/article/2158465?keywords=guyana">Output</a> is projected to reach 750,000 b/d by 2026, compared with around 105,000 b/d in early November. </p><p>ExxonMobil operates Stabroek with a 45pc stake. Its partners are US independent Hess with 30pc and Chinese state-owned CNOOC unit Nexen with 25pc. </p><p>ExxonMobil holds a 35pc operating stake in Kaieteur that lies north of Stabroek. Its minority partners are Canada's Cataleya Energy and Israel's Ratio Energy holding 25pc each, and Hess with 15pc.</p><p>ExxonMobil also operates Canje with a 35pc stake. The block is adjacent to and east of Stabroek. Its partners are France's Total with 35pc, Canadian junior JHI Associates with 17.5pc and local firm Mid-Atlantic Oil and Gas with 12.5pc.</p><p>ExxonMobil is using four drillships in Guyana.</p><p>"We expect to drill our first well on the Canje block by early 2021," ExxonMobil told <i>Argus</i>. "A fifth and a sixth drill ship will support our plans for exploration, appraisal and development wells across the three blocks."</p><p class="bylines">By Canute James</p></article>
