ExxonMobil Makes Final Investment Decision to Proceed with Liza Oil Development in Guyana
June 16 2017 - 8:00AM
Business Wire
- Initial production system expected to
produce up to 120,000 barrels of oil per day
- Development on track for production
startup by 2020; less than five years after discovery
- Gross recoverable resources on Stabroek
block have increased to an estimated 2 billion to 2.5 billion
oil-equivalent barrels
Exxon Mobil Corporation (NYSE:XOM) said today it has made a
final investment decision to proceed with the first phase of
development for the Liza field, one of the largest oil discoveries
of the past decade, located offshore Guyana.
The company also announced positive results from the Liza-4
well, which encountered more than 197 feet (60 meters) of
high-quality, oil-bearing sandstone reservoirs, which will underpin
a potential Liza Phase 2 development. Gross recoverable resources
for the Stabroek block are now estimated at 2 billion to 2.5
billion oil-equivalent barrels, which includes Liza and other
successful exploration wells on Liza Deep, Payara and Snoek.
The Liza Phase 1 development includes a subsea production system
and a floating production, storage and offloading (FPSO) vessel
designed to produce up to 120,000 barrels of oil per day.
Production is expected to begin by 2020, less than five years after
discovery of the field. Phase 1 is expected to cost just over $4.4
billion, which includes a lease capitalization cost of
approximately $1.2 billion for the FPSO facility, and will develop
approximately 450 million barrels of oil.
“We’re excited about the tremendous potential of the Liza field
and accelerating first production through a phased development in
this lower cost environment,” said Liam Mallon, president,
ExxonMobil Development Company. “We will work closely with the
government, our co-venturers and the Guyanese people in developing
this world-class resource that will have long-term and meaningful
benefits for the country and its citizens.”
The Liza Phase 1 development can provide significant benefits to
Guyana, including jobs during installation and operations,
workforce training, local supplier development and government
revenues to fund infrastructure, social programs and services.
The development received regulatory approval from the government
of Guyana.
The Liza field is approximately 190 kilometers offshore in water
depths of 1,500 to 1,900 meters. Four drill centers are envisioned
with a total of 17 wells, including eight production wells, six
water injection wells and three gas injection wells.
The Liza field is part of the Stabroek Block, which measures 6.6
million acres, or 26,800 square kilometers. Esso Exploration and
Production Guyana Limited is operator and holds a 45 percent
interest in the block.
Hess Guyana Exploration Ltd. holds a 30 percent interest and
CNOOC Nexen Petroleum Guyana Limited holds 25 percent.
Esso Exploration and Production Guyana Limited is continuing
exploration activities and operates three blocks offshore Guyana –
Stabroek, Canje and Kaieteur. Drilling of the Payara-2 well on the
Stabroek block is expected to commence in late June and will also
test a deeper prospect underlying the Payara oil discovery.
CAUTIONARY NOTE:
Statements that reference future events or conditions in this
press release are forward-looking statements. Actual future
results, including project plans, costs, and schedules, production
rates, and resource recoveries may differ significantly from the
forecasts, depending on changes in oil or gas prices and other
market or economic factors that affect the petroleum industry; the
outcome of development programs; reservoir performance; unexpected
technical difficulties or other technical or operating factors; the
actions of governmental authorities or regulatory agencies; and
other factors listed under the heading “Factors Affecting Future
Results” on the Investor page at the ExxonMobil website at
www.exxonmobil.com and in Item 1A of ExxonMobil’s most recent Form
10-K. References to barrels of oil and other quantities of oil or
gas in this release include volumes that are not yet classified as
proved reserves under SEC definitions, but that we believe will
ultimately be produced.
About ExxonMobil
ExxonMobil, the largest publicly traded international oil and
gas company, uses technology and innovation to help meet the
world’s growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is the largest refiner and marketer of
petroleum products, and its chemical company is one of the largest
in the world. Follow ExxonMobil on Twitter at
www.twitter.com/exxonmobil.
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