– and where is Guyana in the development process?

IN THE discussions Guyanese are hearing about their burgeoning oil industry, from local content and royalties to capacity building, many people remain unclear about one critical question: How exactly is oil production going to happen?

We know oil production happens in 2020. But what happens from now until then? Or after that? How exactly does a reservoir of crude oil in the rock under almost two kilometers of water become gasoline in a tank, and where is Guyana in that process?

In December 2016, after years of seismic analysis, exploration, and geological testing, Esso Exploration and Production Guyana Limited (EEPGL), ExxonMobil’s local subsidiary, applied for a production licence for the Liza Phase 1 project. The company had just discovered 295 feet of high-quality oil-bearing sandstone reservoirs 5,433 meters below the sea floor, and more than 193 kilometers off the coast of Guyana.

After permission and approval by the Environmental Protection Agency and Ministry of Natural Resources, EEPGL contracted Noble Corp. to provide a specialised drill ship, the Bob Douglas, that can drill the 17 interconnected wells that are part of Liza Phase 1 over the next three years.

This drilling at Liza 1 is currently ongoing.
Once drilled, the Phase 1 wells will feed into four largely automated drill centres some 1500-1900 meters underwater. The system will include eight wells for producing oil, as well as six wells to inject water, and three to reinject natural gas as a way to keep the pressure up in the sandstone oil reservoirs deep underground, and keep the oil flowing.
EEPGL and its contractors are also installing the SURF (Surface, Umbilical, Risers, and Flowlines) system, and preparing the site.

SURF installation involves building a complex system of pipes, containment assemblies, and automated systems on the sea floor that will connect and support the wells. Basically, it’s the below-surface part of the drilling operation, and involves dozens of contracting companies and substantial logistics operations onshore.

After the wells are drilled and the SURF system is set up, then comes the FPSO (Floating Production, Storage and Offloading) vessel, an enormous ship anchored to the sea floor and attached to the SURF systems that will take in the oil, process it, store it and offload it to tanker ships that can bring it to refineries and consumers.

FPSOs are some of the largest and most technically complex ships ever built. Many are larger than aircraft carriers, and come equipped with helipads and room for hundreds of crewmembers, as well as sophisticated fire safety and leak detection systems.

Th development process will involve dozens of other ships, such as support vessels and towboats, as well as helicopters, divers, sophisticated robots, warehouses, storage yards, and support facilities onshore and offshore.

By 2020, if all goes according to plan, the first FPSO on site will be capable of producing 120,000 barrels of oil every day, and will offload its oil to a tanker ship every 8-10 days with the help of around 80 full-time crewmembers.

The expected Liza Phase 2 will involve a second FPSO with an even higher production capacity; 190,000-220,000 barrels per day, according to ExxonMobil. This part of the project will include 35-40 wells, and will firmly cement Guyana’s place as a world-class oil producer.

Now that Liza Phase 2 planning is underway, the EPA has been conducting consultations throughout the country, where ExxonMobil and government representatives answer questions about the upcoming project and address the concerns of residents. Completed on Friday, this process is an important part of the EPA’s Environmental Impact Assessment (EIA) for Phase 2.

The hearings fielded questions from residents on issues like emergency response for oil spills, and impacts on water quality.

These sessions allowed officials from the government and ExxonMobil to explain the process in detail, and gave communities a chance to provide feedback and gain an understanding of how Guyana’s new-found oil wealth will impact their lives.
These are exactly the kinds of discussions that will, hopefully, help the people of Guyana get the most out of an unprecedented opportunity for our country.