ExxonMobil Brings Online Second Major Offshore Guyana Project
At a time when oil prices are surging and global supply is
struggling to meet fast recovering energy demand, ExxonMobil and its partners
have added 220,000 b/d oil production capacity to their offshore Guyana
project.
Production has begun at the second offshore oil development
at the prolific Stabroek block. The Liza Phase 2 development is expected to
increase total production capacity k to more than 340,000 b/d. The first
offshore project, Liza Phase 1, began production in late 2019.
“We are collaborating closely with the government and people
of Guyana to develop this world-class resource responsibly, helping to meet the
world’s energy needs and delivering enhanced value for all stakeholders at a
record pace and well ahead of the industry average,” said ExxonMobil’s Liam
Mallon, president of Upstream Oil and Gas.
ExxonMobil affiliate Esso Exploration and Production Guyana
Ltd. is the operator and holds 45% interest. Hess Guyana Exploration Ltd. holds
a 30% stake, and CNOOC Petroleum Guyana Ltd. has a 25% interest.
Production at the Liza Unity floating, production, storage
and offloading (FPSO) vessel should reach its target of 220,000 b/d later this
year, ExxonMobil said.
The Stabroek block’s recoverable resource base is estimated
at more than 10 billion boe, and new discoveries are added each year. In
January, ExxonMobil said it added two oil and natural gas discoveries offshore
Guyana.
ExxonMobil sees four FPSOs with total capacity of 800,000
b/d in operation on the Stabroek block by the end of 2025. Payara, the third
project, is expected to produce 220,000 b/d of oil with a vessel currently
under construction. The field development plan and application for
environmental authorization for the Yellowtail project, the fourth project,
have been submitted for government and regulatory approval.
ExxonMobil has touted the project as key to economic
development in Guyana. The company said it has 3,500 Guyanese citizens employed
in its activities in the country.
Last year, Hess CEO John Hess called offshore Guyana “one of
the industry’s best investments.” Oil developments offshore Guyana have a Brent
breakeven estimated at $25-35/bbl.
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