— as ExxonMobil begins production at second offshore development
— more than 3,500 Guyanese currently supporting ExxonMobil activities in Guyana
— gov’t reaffirms increase earnings from the petroleum sector will drive development for all citizens

EXXONMOBIL has started production at Guyana’s second offshore oil development on the Stabroek Block, Liza Phase Two, bringing the total production capacity to more than 340,000 barrels per day in only seven years since the country’s first discovery.

According to a release, production at the Liza Unity Floating, Production, Storage and Offloading (FPSO) vessel is expected to reach its target of 220,000 barrels of oil later this year, as operations continue to be brought safely online.

This adds to the more than 120,000 barrels per day of capacity at the Liza Destiny FPSO, which began production in December 2019 and is now delivering at better than design capacity.

The Stabroek Block’s recoverable resource base is currently estimated at more than 10 billion oil-equivalent barrels.

“We are collaborating closely with the government and people of Guyana to develop this world-class resource responsibly, helping to meet the world’s energy needs and delivering enhanced value for all stakeholders at a record pace and well ahead of the industry average,” said Liam Mallon, President, ExxonMobil Upstream Oil and Gas.

He added: “With unparalleled project execution, we now have two production facilities operating offshore Guyana.”

The current resource has the potential to support up to 10 projects. ExxonMobil anticipates that four FPSOs with a capacity of more than 800,000 barrels per day will be in operation on the Stabroek Block by year-end 2025.

Payara, the third project in the Stabroek Block, is expected to produce approximately 220,000 barrels of oil per day using the Prosperity FPSO vessel, which is currently under construction. The field development plan and application for environmental authorisation for the Yellowtail project, the fourth project in the block, have been submitted for government and regulatory approval.

Timely development of these additional projects and continued exploration success offshore will enable the steady advancement of Guyanese capabilities and enhanced economic growth.

LOCAL SUPPORT
More than 3,500 Guyanese are now supporting ExxonMobil’s activities in Guyana. ExxonMobil and its direct contractors spent approximately $219 million with more than 880 local suppliers in 2021, a 37 per cent year-over-year increase.

The Liza Unity arrived in Guyana in October 2021. It is moored in water depth of about 1,650 meters and will be able to store around two million barrels of crude. The Liza Unity is the world’s first FPSO to be awarded the SUSTAIN-1 notation by the American Bureau of Shipping in recognition of the sustainability of its design, documentation and operational procedures.

Meanwhile, the Government of Guyana, through the Ministry of Natural Resources, in a statement, welcomed the announcement by ExxonMobil.

“The Government of Guyana and citizens welcome the operation of this new FPSO to sustainably extract and manage the country’s oil and gas resources, which will further enhance earnings from this sector to drive Guyana’s infrastructure development and improve the delivery of services to all citizens,” said Natural Resources Minister, Vickram Bharrat.

Minister Bharrat pointed out that the increased total daily capacity of oil augers well for Guyana, especially on the heels of operationalising the Local Content Secretariat and the Natural Resources Fund, in keeping with the Santiago Principles of transparency and accountability within the petroleum sector.

ALL GUYANESE BENEFIT
“Further, the government will be taking all necessary steps to ensure that all Guyanese benefit from the earnings derived from the petroleum sector.

“As such, the Government of Guyana has mandated the Ministry of Natural Resources to coordinate and work closely with international partners, local regulatory agencies, and key stakeholders within the petroleum sector to ensure the sector performs optimally in keeping with internationally recognised best practices,” the ministry said.

The Ministry of Natural Resources said it will continue to work with ExxonMobil which will bring at least four FPSOs into operation to produce more than 800,000 barrels per day from the Stabroek Block by the end of 2025.

Additionally, Payara, the third project in the Stabroek Block, is expected to produce approximately 220,000 barrels of oil per day using the Prosperity FPSO vessel, which is currently under construction. The field development plan and application for environmental authorisation for the Yellowtail project, the fourth project in the block, have been submitted for review by the government and other regulatory approval.

The Liza Unity FPSO will be able to store around two million barrels of crude. The Liza Unity is the world’s first FPSO to be awarded the SUSTAIN-1 notation by the American Bureau of Shipping in recognition of the sustainability of its design, documentation, and operational procedures.

ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 per cent interest. Hess Guyana Exploration Limited holds 30 per cent interest and CNOOC Petroleum Guyana Limited holds 25 per cent interest.