– to produce up to 220,000 barrels per day
EXXONMOBIL, following an agreement with the Government of Guyana, has decided to proceed with the Payara field development offshore Guyana.
Payara is the company’s third project in the Stabroek Block and is expected to produce up to 220,000 barrels of oil per day after start-up in 2024, using the Prosperity floating production, storage and offloading (FPSO) vessel.
The $9 billion development will target an estimated resource base of about 600 million oil-equivalent barrels. Ten drill centres are planned, along with up to 41 wells, including 20 production and 21 injection wells.
“ExxonMobil is committed to building on the capabilities from our Liza Phases 1 and 2 offshore oil developments as we sanction the Payara field and responsibly develop Guyana’s natural resources,” said Liam Mallon, President of ExxonMobil Upstream Oil & Gas Company, adding: “We continue to prioritise high-potential prospects in close proximity to discoveries and maximise value for our partners, which include the people of Guyana.”
ExxonMobil’s first offshore Guyana project, Liza Phase 1, began producing in late 2019 well ahead of the industry average for development time. Liza Phase 2 remains on track to begin producing oil by early 2022.
Liza Phase 2 will produce up to 220,000 barrels of oil per day at peak rates, using the Liza Unity FPSO, which is under construction in Singapore.
According to a press statement, ExxonMobil is evaluating additional development opportunities in the Stabroek Block, including Redtail, Yellowtail, Mako and Uaru resources, and plans to have five ‘drillships’ operating offshore Guyana by the end of this year.
As new projects proceed, investment in the Guyana economy increases, said the company. More than 2,000 Guyanese are now supporting project activities on and offshore, a 50 per cent increase since 2019.
ExxonMobil and its prime contractors have spent over $300 million with more than 700 local companies since 2015. More than 2,500 Guyanese companies are registered with the Centre for Local Business Development, which was founded by ExxonMobil and its co-venturers in 2017, to build local business capacity to support global competitiveness.
The Stabroek Block is 6.6 million acres (26,800 square kilometres) with current discovered recoverable resources estimated at more than eight billion oil-equivalent barrels. The 18 discoveries on the block to date have established the potential for at least five FPSO vessels producing more than 750,000 barrels of oil per day by 2026.
ExxonMobil affiliate Esso Exploration and Production Guyana Limited is an operator and holds 45 per cent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 per cent interest and CNOOC Petroleum Guyana Limited, a wholly owned subsidiary of CNOOC Limited, holds 25 per cent interest.
Bloomberg had reported recently that ExxonMobil, Pfizer and Raytheon Technologies were kicked out of the Dow Jones Industrial Average, as part of the stock benchmark’s biggest reshuffling in seven years.
According to the report, while any change to the Dow is notable, the ejection of ExxonMobil — the world’s biggest company as recently as 2011 — marks a particularly stunning fall from grace, reflecting the decline of commodity companies in the American economy. Worth $525 billion in 2007 and more than $450 billion as recently 2014, the stock had fallen in four of six years before 2020 and is down another 40 per cent since January.
Despite those constraints, Guyana has already received US$140 million from the sale of crude, which is being produced by ExxonMobil’s Liza phase one development.
ExxonMobil is now firmly established in Guyana, operating an office in Georgetown with numerous ongoing exploration and development operations offshore. ExxonMobil Guyana has made 18 discoveries since May 2015 and began production in December 2019 from the Liza Phase one development project.
The company is the operator of the Stabroek, Canje and Kaieteur Blocks offshore Guyana. Since 2015, ExxonMobil has increased its estimated recoverable resource base in Guyana to more than eight billion oil-equivalent barrels.