At a time when oil prices are skyrocketing and global supply is struggling to meet rapidly recovering energy demand, ExxonMobil and its partners have added 220,000 b/d of oil production capacity to their offshore Guyana project.
Production has commenced on the second offshore oil development at the prolific Stabroek block. The Phase 2 development of Liza is expected to increase total production capacity k to in excess of 340,000 b/d. The first offshore project, Liza Phase 1, started production at the end of 2019.
“We are working closely with the government and people of Guyana to responsibly develop this world-class resource, help meet the world’s energy needs and deliver value to all stakeholders at record speed and well above the industry average,” said ExxonMobil Liam Mallon, President of Upstream Oil and Gas.
ExxonMobil subsidiary Esso Exploration and Production Guyana Ltd. is the operator and holds 45% of the shares. Hess Guyana Exploration Ltd. holds a 30% stake and CNOOC Petroleum Guyana Ltd. a share of 25%.
Production on the Floating, Production, Storage and Offloading (FPSO) vessel Liza Unity is expected to reach its target of 220,000 b/d later this year, ExxonMobil said.
The Stabroek Block’s recoverable resource base is estimated to be in excess of 10 billion boe, with new discoveries being made every year. In January, ExxonMobil announced it had added two oil and natural gas discoveries off the coast of Guyana.
ExxonMobil expects four FPSOs with a total capacity of 800,000 b/d to be operational in the Stabroek Block by the end of 2025. Payara, the third project, is expected to produce 220,000 b/d of oil from a vessel currently under construction. The field development plan and environmental permit application for the Yellowtail Project, the fourth project, has been submitted for regulatory and regulatory approval.
ExxonMobil has touted the project as key to Guyana’s economic development. The company said it has 3,500 Guyanese nationals employed in its operations in the country.
Last year, John Hess, CEO of Hess, called offshore Guyana “one of the best investments in the industry”. Oil production off the coast of Guyana has a Brent breakeven estimated at $25-35/barrel.
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