Over US$7B in royalty and profit from Liza Phase 1 -ExxonMobil

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Liza Phase 1 is expected to generate over US$7 billion in royalty and profit oil revenues for Guyana during the life of the project, ExxonMobil announced today.

The oil major, in a statement, noted that the development of the Liza Phase 1 project continues to progress rapidly with the commencement of development drilling offshore Guyana.

It said. “additional benefits will accrue from other development projects now being planned.”

ExxonMobil said development drilling began in May for the first of 17 wells planned for Phase 1, laying the foundation for production startup in 2020.

The company and its co-venturers have so far discovered estimated recoverable resources of more than 3.2 billion oil-equivalent barrels on the Stabroek Block.

President of ExxonMobil Development Company, Liam Mallon lauded the work done by the company’s local team.

“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,” the statement quoted.

Mallon was further quoted as saying that Guyanese businesses, contractors and employees have been an essential element of the exploration, drilling and development progress made by the company.

Mallon said, “our focus is on enabling local workforce and supplier development, and collaborating with the government to support the growth and success of Guyana’s new energy industry.”

“About 50 per cent of ExxonMobil’s employees, contractors and subcontractors are Guyanese, a number that will continue to grow as operations progress,” the company said.

The oil major said it also 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 centre has enabled access to training and capacity-building support for more than 275 local businesses, it added.

Liza Phase 1 involves the conversion of an oil tanker into a floating, production, storage and offloading (FPSO) vessel named Liza Destiny, along with four undersea drill centers with 17 production wells.

The company said 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 while 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, the company said.

Together, these three developments will produce more than 500,000 barrels of oil per day.

The Stabroek Block is 6.6 million acres (26,800 square kilometers). Esso Exploration and Production Guyana Limited is the operator and holds 45 per cent interest. Hess Guyana Exploration Ltd. holds 30 per cent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 per cent interest.

 

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