The Guyanese government is expected to grant ExxonMobil and its partners a production license for the giant Liza project ahead of the partnership’s final investment decision (FID), which is set for this month.
 |
|
Map of Stabroek, from Exxon. |
Exxon subsidiary Esso Exploration & Production (Guyana) (EEPGL) submitted Liza’s development plan in December 2017, the government of the Cooperative Republic of Guyana says it expects to grant a production license to ExxonMobil for production of petroleum to move ahead in 2020.
“The production license is required to be finalized before the developers make their FID for the project in June 2017,” says the Guyanese government. “Extraction from the Liza field is expected to commence in 2020 at an initial rate of 100,000 bo/d in the first phase; with a floating production storage and offloading (FPSO) vessel providing the main infrastructural support for the project.”
The Liza wells are in the 26,800sq km (6.6 million acre) Stabroek block, about 193km offshore Guyana. Liza-2 is about 3.3km from Liza-1. In October 2016, Liza-3 confirmed a "world-class" resource discovery in excess of 1 billion boe. Exxon says it envisions two drill centers at Liza, with a total of 17 wells: eight production, six water injection, and three gas injection wells.
The government says that Guyana will receive a royalty of 2% on gross earnings and benefit from 50% of the profits from the sale of petroleum once production start.
In an investor presentation on 1 March, Exxon CEO Darren Woods told investors that Liza’s FID would be made this year, with first oil set for 2020.
In January, Wood Mackenzie said that a lack of infrastructure in Guyana is a growing concern, especially for gas.
Exxon’s Esso E&P Guyana operates the Stabroek Block (45%), along with partners Hess Guyana Exploration (30%) and CNOOC Nexen Petroleum Guyana (25%).
Read more:
Subscribe
