The U.S. oil major ExxonMobil has made history as it has started producing first oil from its Liza field offshore Guyana, making the Latin American country an oil-producing nation.
ExxonMobil made the first oil announcement on Friday evening, saying that that oil production started from the Liza field ahead of schedule and less than five years after the first discovery of hydrocarbons, “well ahead of the industry average for deepwater developments.”
Production from the first phase of the Liza field, located in the Stabroek Block, is expected to reach full capacity of 120,000 barrels of oil per day in coming months, and the first cargo is set to be sold within several weeks, ExxonMobil said.
Darren Woods, chairman and chief executive officer of Exxon Mobil Corporation: “This historic milestone to start oil production safely and on schedule demonstrates ExxonMobil’s commitment to quality and leadership in project execution. We are proud of our work with the Guyanese people and government to realize our shared long-term vision of responsible resource development that maximizes benefits for all.”
The concept design for the Liza Phase 1 development project features SBM Offshore supplied Liza Destiny FPSO moored 190 kilometers offshore Guyana, and four subsea drill centers supporting 17 wells.
According to ExxonMobil, around 1,700 of ExxonMobil’s employees and other workers supporting its activities in Guyana are Guyanese – more than 50 percent of the total workforce.
“This number will continue to grow as additional operations progress. ExxonMobil and its direct contractors have spent approximately $180 million with more than 630 local suppliers since the first discovery in 2015,” ExxonMobil said.
A second FPSO, Liza Unity, also ordered from SBM Offshore, with a capacity to produce up to 220,000 barrels of oil per day is under construction to support the Liza Phase 2 development, and front-end engineering design is underway for a potential third FPSO, the Prosperity, to develop the Payara field upon government and regulatory approvals.
Commenting on first oil Bruno Chabas, CEO of SBM Offshore, said: “We are proud of FPSO Liza Destiny reaching first oil for our client and the people of Guyana. The vessel is producing the first oil in Guyana’s history.
“The delivery time from the engineering study phase until first oil, three years, is impressive and a clear testimony of our capabilities and industry-leading experience. We are looking forward to further generating value for our client ExxonMobil and in particular with respect to making a contribution towards Guyana becoming a significant oil-producing country.”
ExxonMobil expects that by 2025 at least five FPSOs will be producing more than 750,000 barrels per day from the Stabroek Block.
“The timely development of these additional projects will ensure that the local workforce and the utilization of local suppliers will continue to grow,” ExxonMobil said.
The current estimated discovered recoverable resource for the Stabroek Block is more than 6 billion oil-equivalent barrels.
Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.
Offshore Energy Today Staff
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