Exxon seeks authorisation for Liza Phase 2

OIL and gas exploration giants, ExxonMobil has announced that it has started the process of developing its potential Liza Phase 2, by submitting an application to the Environmental Protection Agency (EPA) for environmental authorisation.

The company in a statement on its Facebook page on Thursday indicated that it is still planning a potential production concept for Liza Phase 2.

The company indicated that it is considering the initiation of the second phase of the Stabroek Block Liza discovery, the Liza Phase 2 Development, which would serve as the second oil and gas development project in Guyana.

According to Exxon, the potential concept involves a second floating, production, storage and offloading vessel (FPSO) and related subsea equipment, umbilical, risers and flow lines.

The proposed development concept is similar to that of Liza Phase 1.

“Approximately 35-40 wells may be drilled at two subsea drill centres, consisting of a combination of producers and injectors to support production of oil, injection of water and reinjection of associated gas,” said the company.

These subsea facilities, as reported, will include various types of equipment, pipelines and hardware.

Exxon explained that the subsea facilities allow the oil from the wells to be gathered and moved to the surface of the ocean for further processing by the FPSO.

The FPSO will have an estimated production capacity of approximately 190,000 to 220,000 barrels of oil per day.

ExxonMobil’s Country Director, Rod Henson had said Guyana can profit from as much as US$7B over the first phase of its Liza project.

This figure translates to $1.45 trillion Guyana dollars over the course of the 20-year-long, Phase 1 of the company’s Liza project offshore Guyana.

The projected sums are based on price projects, Exxon noted. Following the release of the contract with Government, Exxon provided details of the company’s interest in the Stabroek Block offshore Guyana.

Exxon projected that over a five-year period, the country stands to benefit from US$1.5B from the Liza project.

Citing the petroleum agreement’s competitive nature as being similar to those the company signed with other countries, Henson told reporters that the potential which the country stands to benefit from can “substantially increase the standard of living in Guyana”.

As he compared the 2016 agreement with the initial agreement the company signed in 1999, Henson said that Exxon agreed to a number of higher and new payments, including the US$18M bonus which Government placed in a designated account in the Bank of Guyana this year.

Henson said that a new commitment was the increase in rental fees from US$240,000 annually to US$1M which is payable to the country.

In addition, Exxon has committed to paying an annual training fee of US$300,000 a figure which improved from the US$45,000 of the 1999 agreement.

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1 thought on “Exxon seeks authorisation for Liza Phase 2”

  1. Why not tell us how much we could benefit if we even got an average international deal instead of the permanent tax holiday treason Trotman committed?

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