…one of the largest oil finds in a decade

EXXONMOBIL on Friday announced that its final investment in the development of the Liza field stands at just over $4.4B for the first phase, a statement from the U.S. oil giant said. The company’s announcement came one day after the Guyana government announced that it has granted it a production licence.
The Liza field is one of the largest oil discoveries of the past decade and is located offshore Guyana.

The Liza Phase 1 development includes a subsea production system and a floating production, storage and offloading (FPSO) vessel designed to produce up to 120,000 barrels of oil per day. “Production is expected to begin by 2020, less than five years after discovery of the field. Phase 1 is expected to cost just over $4.4 billion, which includes a lease capitalisation cost of approximately $1.2 billion for the FPSO facility, and will develop approximately 450 million barrels of oil,” the statement said.

President of ExxonMobil Development Company, Liam Mallon, said, “We’re excited about the tremendous potential of the Liza field and accelerating first production through a phased development in this lower-cost environment,” said Mallon. “We will work closely with the government, our co-venturers and the Guyanese people in developing this world-class resource that will have long-term and meaningful benefits for the country and its citizens.”
ExxonMobil has said that the positive results from the Liza-4 well in which was found more than 197 feet (60 metres) of high-quality, oil-bearing sandstone reservoirs, which will underpin a potential Liza Phase 2 development.

Gross recoverable resources for the Stabroek block are now estimated at 2 billion to 2.5 billion oil-equivalent barrels, which includes Liza and other successful exploration wells on Liza Deep, Payara and Snoek, the company said.
Accordingly, ExxonMobil believes the Liza Phase 1 development can provide significant benefits to Guyana, including jobs during installation and operations, workforce training, local supplier development and government revenues to fund infrastructure, social programmes and services.

The Liza field is approximately 190 kilometres offshore in water depths of 1,500 to 1,900 metres. Four drill centres are envisioned with a total of 17 wells, including eight production wells, six water-injection wells and three gas-injection wells, the statement added.
The Liza field is part of the Stabroek Block, which measures 6.6 million acres, or 26,800 square kilometres. Esso Exploration and Production Guyana Limited is operator and holds a 45 percent interest in the block.
Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent.

Esso Exploration and Production Guyana Limited is continuing exploration activities and operates three blocks offshore Guyana – Stabroek, Canje and Kaieteur. Drilling of the Payara-2 well on the Stabroek block is expected to commence in late June and will also test a deeper prospect underlying the Payara oil discovery.