THE Liza 2 Development project of oil and gas exploration giant, ExxonMobil, has been green-lighted by the Environmental Protection Agency (EPA).

While the company offered not to comment on the issue on Monday, Executive Director of the EPA confirmed the approval on Monday. Last January, Exxon announced that it commenced the process of developing its potential Liza Phase 2 by submitting an application to the EPA for environmental authorisation.

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,” the company said last year.

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. 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. 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.