Liza Phase 2 offshore Guyana gets the greenlight

ExxonMobil and its partners have funded the Liza Phase 2 development offshore Guyana after it received government and regulatory approvals.

Offshore staff

IRVING, Texas – ExxonMobil and its partners have funded the Liza Phase 2 development offshore Guyana after it received government and regulatory approvals.

Located in the Stabroek block, six drill centers are planned with a total of 30 wells, including 15 production, nine water injection, and six gas injection wells. Start-up is expected by mid-2022 and will develop about 600 MMbbl of oil.

It is expected to cost $6 billion, including a lease capitalization cost of approximately $1.6 billion, for the FPSO Liza Unity, which will have the capacity to produce up to 220,000 b/d.

Liza Phase 1 remains on track to achieve first oil by 1Q 2020, according to ExxonMobil. The FPSO Liza Destiny will have the capacity to produce up to 120,000 b/d of oil at peak rates. The FPSO is expected to arrive offshore Guyana in 3Q 2019.

Pending government and regulatory approvals, a final investment decision is expected later this year for a third phase of development, Payara. This development is expected to produce between 180,000 and 220,000 b/d with startup as early as 2023.

The company said it is evaluating additional development potential in other areas of the Stabroek block, including at the Turbot area and Hammerhead.

By the end the year, ExxonMobil will have four drillships operating offshore Guyana. Following well completion activities at the Yellowtail discovery, the Noble Tom Madden will move to the Hammerhead-2 well. The Stena Carron is completing a well test at the Longtail-1 discovery and will then move to the Hammerhead-3 well.

Later in 2019, the Stena Carron will drill a second well at the Ranger discovery. The Noble Bob Douglas is completing development drilling for Liza Phase 1. The Noble Don Taylor is expected to arrive in Guyana 4Q 2019.

The partners’ investment in the Guyanese economy continues to increase, ExxonMobil said. The number of Guyanese nationals supporting project activities more than doubled in 2018 to more than 1,000. ExxonMobil and its co-venturers spent nearly $60 million with more than 500 Guyanese vendors in 2018. More than 1,500 Guyanese companies are registered with the Centre for Local Business Development, which was founded by the partners in 2017 with the mission of supporting local businesses to become globally competitive.

The Stabroek block is 6.6 million acres (26,800 sq km). Current discovered recoverable resources are estimated at more than 5.5 Bboe. The 13 discoveries on the block to date have established the potential for at least five FPSO vessels producing more than 750,000 b/d of oil by 2025.

ExxonMobil affiliate Esso Exploration and Production Guyana Ltd. is operator and holds 45% interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Ltd., a wholly-owned subsidiary of CNOOC Ltd., holds 25% interest.

05/03/2019

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