Gov’t commences review of Exxon’s third Field Development Plan


While the Government is ramping up works in preparation for first oil from the Liza 1 project, the Department of Energy has also commenced a preliminary review of ExxonMobil’s third Field Development Plan (FDP).

Director of the Energy Department Dr Mark Bynoe on Monday told the media that the Department along with the Guyana Geology and Mines Commission (GGMC) is reviewing the Payara FDP.

He said the review is being done based on experience gained under the Liza 1 & 2 FDPs.

Dr Bynoe further stated that a third party reviewer is being engaged and the contract will be signed shortly.

A Preliminary Field Layout for the Payara Development Project

“The procurement for recruiting the third party reviewer and [the department] has completed contract negotiations and is awaiting the award of the contract,” he told the media at a press conference at the entity’s Brickdam and United Nations Place, Georgetown office.

The Payara discovery –Exxon’s second oil discovery in the Stabroek Block was announced in January 2017. The Payara- 1 well was drilled in a new reservoir, encountering more than 95 feet (29 meters) of high-quality, oil-bearing sandstone reservoirs. It was safely drilled to 18,080 feet (5,512 meters) in 6,660 feet (2,030 meters) of water.

In July 2017, the US oil major announced it has discovered additional oil in the Payara reservoir increasing the total Payara discovery to approximately 500 million oil-equivalent barrels.

The discovery was made at the Payara-2 well which encountered 59 feet (18 meters) of high-quality, oil-bearing sandstone, confirming the second giant field discovered in Guyana.

The Payara FDP was submitted in September. It includes a floating production, storage and offloading (FPSO) vessel, named Prosperity which is expected to produce 220,000 barrels per day.

The Payara with up to 45 wells –including production wells, water injection wells and gas injection wells –is similar to that of Liza phase 1 and 2.

The Payara development startup is expected as early as 2023.

Additionally, final works are ongoing for the production of oil from the Liza-1 project offshore Guyana.

Dr Mark Bynoe reported that the facility hook-up on the Liza Destiny and commissioning is progressing well.

Also, the Liza Unity—the second FPSO to join the operations offshore –is being completed, Dr Bynoe said. He noted that the Hull for the Liza Unity is about 97% complete and is being built in Shanghai.

“Topsides Fabrication are continuing at Dynamac and Keppel in Singapore, and good progress is being achieved. Several trees/tubing heads have been completed and are awaiting shipment to Trinidad from Brazil and then into Guyana [while] line pipe fabrication in Japan is 99% complete; pipe insulation is ongoing in Mexico/US ad buoyancy modules are 80% complete in the UK,” he noted.

Dr. Bynoe said the Operator is working with the Energy Department to include Guyanese expertise in various stages of the Unity’s completion as per the FDP approval.

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

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