ExxonMobil is fast-tracking its Stabroek Block project where its giant Liza discovery lies, as the supermajor officially gave notice of the area’s commercial oil find to Guyana’s government yesterday (16 November), according the country’s Government Ministry of National Resources.
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Image of the Stena Carron, from Stena. |
Guyana Minister Raphael Trotman said that the notification given by ExxonMobil and its partners, Nexen Energy and Hess Corp., is one that is required by Section 31 of the Petroleum Act. Trotman pointed out that it is the first time in Guyana’s 50-year history as an independent nation, that the section of the Act is being activated.
“This is a profound and watershed moment in the development of our country … so there is great humility and great responsibility that comes with the handing over and receiving of this letter,” Trotman said. “The year 2016 is the year of foundation building with 2017 being the year of implementation of earmarked plans and programs.”
“What you are seeing today, is the beginning of a very large effort which will unfold over the next few years as we finalize our plans, and implement them, trying to develop this field,” Erik Oswald, ExxonMobil VP said.
According to the Ministry, a number of plans will be rolled out in a few weeks.
“[The development plan] tells us that all the partners in this project are committed, and that the investment decision will be a positive one next year, and that we could move to production in the earliest possible time,” Trotman said.
ExxonMobil recently mobilized the Carron Stena harsh environment drillship, to test the third prospect of the Stabroek block, Liza-3.
“The oil find in Guyana has been attracting the attention of major companies, with a number of them seeking to obtain exploratory permits,” the Ministry said.
Drilling results in the area have confirmed recoverable resources to be between 800 MMboe – 1.4 billion boe.However, late last month, ExxonMobil completed the Liza-3 well and received positive results that increased the discovery’s potential.
“Based on the positive results of the Liza-3 well, we now expect Liza to be at the upper end of the previously announced estimated recoverable resources range of 800 MMboe to 1.4 billion boe,” Hess CEO John Hess said in October.
The Liza wells are in the Stabroek block, about 193km offshore Guyana. Liza-2 is about 3.3km from Liza-1. Stabroek consists of 26,800sq km (6.6 million acres).
Read more:
Exxon's Liza-3 proves successful
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