IRVING, US: ExxonMobil Corporation (XOM) has made a final investment decision to proceed with the first phase of development for the Liza field, one of the largest oil discoveries, located offshore Guyana.
The company also announced positive results from the Liza-4 well, which encountered more than 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoirs, which will underpin a potential Liza phase 2 development. Gross recoverable resources for the Stabroek block are now estimated at 2 billion to 2.5 billion oil-equivalent barrels, which includes Liza and other successful exploration wells on Liza Deep, Payara and Snoek.
The Liza phase 1 development includes a subsea production system and a floating production, storage and offloading (FPSO) vessel designed to produce up to 120,000 barrels of oil per day. Production is expected to begin by 2020, less than five years after the discovery of the field. Phase 1 is expected to cost just over $4.4 billion, which includes a lease capitalization cost of approximately $1.2 billion for the FPSO facility, and will develop approximately 450 million barrels of oil.
The Liza phase 1 development can provide significant benefits to Guyana, including jobs during installation and operations, workforce training, local supplier development and government revenues to fund infrastructure, social programs and services.
The development received regulatory approval from the government of Guyana.
Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent.
“We’re excited about the tremendous potential of the Liza field and accelerating the first production through a phased development in this lower cost environment. We will work closely with the government, our co-ventures’ and the Guyanese people in developing this world-class resource that will have long-term and meaningful benefits for the country and its citizens,” said Liam Mallon, president, ExxonMobil Development Company.
© Worldofchemicals News
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