ExxonMobil begins drilling at the Liza Phase 1 development offshore Guyana

ExxonMobil has commenced drilling at its Liza Phase 1 development offshore Guyana



ExxonMobil began drilling activities at its Liza Phase 1 development offshore Guyana. Operations commenced in May at the first of the 17 wells planned for this first phase. This is a landmark that establishes the base for commissioning this project in 2020, according to WorldOil.

For their part, the companies involved have discovered recoverable resources estimated at over 3.2 Bboe at the Stabroek Block. This field is part of an area that could be the second largest reservoir in the world.

“The work our teams have done in Guyana is remarkable,” said Liam Mallon, president of ExxonMobil Development Company. “We are well on our way to producing oil less than five years after our first discovery, which is well ahead of the industry average for similar projects. The Liza development and future projects will provide significant economic benefits to Guyana.”

Liza Phase 1 is set to generate about $7 billion in royalty and profit for Guyana during the project’s useful life. Additional benefits will accrue from other development projects currently in the planning stage.

This development offshore Guyana involves the conversion of an oil tanker into a floating, production, storage and offloading (FPSO) vessel named Liza Destiny. Additionally, it will have four undersea drill centers with 17 production wells. Construction of the FPSO and subsea equipment is underway in more than a dozen countries.

Liza Destiny will have a production capacity of 120,000 barrels of oil per day. A second FPSO with a capacity of 220,000 barrels per day is being planned as part of the Liza Phase 2 development, and a third is under consideration for the Payara development. Together, these three developments will produce more than 500,000 barrels of oil per day.

ExxonMobil increasing offshore activities in Guyana

“Guyanese businesses, contractors, and employees have been an essential element of our exploration, drilling and development progress,” Mallon said. “Our focus is on enabling local workforce and supplier development. We also collaborate with the government to support the growth and success of Guyana’s new energy industry.”

About 50 percent of ExxonMobil’s employees, contractors, and subcontractors are Guyanese, this will continue to grow as operations progress. ExxonMobil spent about $24 million with more than 300 local suppliers in 2017, and opened the Centre for Local Business Development in Georgetown, Guyana, to promote the establishment and growth of small- and medium-sized local businesses. The center has enabled access to training and capacity-building support for more than 275 local businesses.

The Stabroek Block, located offshore Guyana, is 26,800 square kilometers. Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest. Hess Guyana Exploration holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.

This is the block that, according to Venezuela, is located in the dispute region part of a long conflict that the country has maintained with Guyana.

For more related information, visit Energía16.

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