FIRST OIL PRODUCED FROM LIZA
IRVING, Texas–(BUSINESS WIRE)–ExxonMobil today (20 December) announced that oil production has started from the Liza field offshore Guyana ahead of schedule and less than five years after the first discovery of hydrocarbons, which is well ahead of the industry average for deepwater developments.
Production from the first phase of the Liza field, located in the Stabroek Block, is expected to reach full capacity of 120,000 barrels of oil per day in coming months, and the first cargo is set to be sold within several weeks.
“This historic milestone to start oil production safely and on schedule demonstrates ExxonMobil’s commitment to quality and leadership in project execution,” said Darren Woods, chairman and chief executive officer of Exxon Mobil Corporation (NYSE:XOM). “We are proud of our work with the Guyanese people and government to realize our shared long-term vision of responsible resource development that maximizes benefits for all.”
The concept design for the Liza Phase 1 development project features the Liza Destiny floating, production, storage and offloading (FPSO) vessel moored 190 kilometers offshore Guyana, and four subsea drill centers supporting 17 wells.
Approximately 1,700 of ExxonMobil’s employees and other workers supporting its activities in Guyana are Guyanese – more than 50 percent of the total workforce. This number will continue to grow as additional operations progress. ExxonMobil and its direct contractors have spent approximately $180 million with more than 630 local suppliers since the first discovery in 2015.
“Through our continued workforce development and community investments, we are making a positive impact in Guyana,” said Rod Henson, president of ExxonMobil’s Guyana affiliate. “We are committed to the use of technology and continued innovation to achieve the highest standards for safety and environmental performance.”
A second FPSO, Liza Unity, with a capacity to produce up to 220,000 barrels of oil per day is under construction to support the Liza Phase 2 development, and front-end engineering design is underway for a potential third FPSO, the Prosperity, to develop the Payara field upon government and regulatory approvals. ExxonMobil anticipates that by 2025 at least five FPSOs will be producing more than 750,000 barrels per day from the Stabroek Block. The timely development of these additional projects will ensure that the local workforce and the utilization of local suppliers will continue to grow.
The current estimated discovered recoverable resource for the Stabroek Block is more than 6 billion oil equivalent barrels. Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.
Source ExxonMobil
ExxonMobil’s 15th oil discovery offshore Guyana at Mako-1 Well
IRVING, Texas–(BUSINESS WIRE)–ExxonMobil (NYSE:XOM) said today it made an oil discovery offshore Guyana at the Mako-1 well southeast of the Liza field, marking the 15th discovery on the Stabroek Block. The discovery adds to the previously announced estimated recoverable resource of more than 6 billion oil-equivalent barrels on the Stabroek Block.
“New discoveries in this world-class basin have the potential to support additional developments,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil. “Our proprietary full-wave seismic inversion technology continues to help us better define our discovered resource and move rapidly to the development phase.”
Mako-1 encountered approximately 164 feet (50 meters) of a high-quality oil bearing sandstone reservoir. Mako-1, drilled in 5,315 feet (1,620 meters) of water, is located approximately six miles (10 kilometers) southeast of the Liza field, which began producing oil in December 2019.
The Liza Phase 1 development achieved first oil on Dec. 20, 2019 and will produce up to 120,000 barrels of oil per day utilizing the Liza Destiny floating production storage and offloading vessel (FPSO).The Liza Unity FPSO, which will be employed for the second phase of Liza development and will have a production capacity of 220,000 barrels of oil per day, is under construction and expected to start production by mid-2022.
Pending government approvals and project sanctioning of a third development, production from the Payara field north of the Liza discoveries could start as early as 2023, reaching an estimated 220,000 barrels of oil per day.Drilling activities in Guyana continue with four drillships to further explore and appraise new resources as well as develop the resources within approved projects.
The Stabroek Block is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 percent interes
By Staff Reporter – December 23, 2019Georgetown, Guyana – (December 23, 2019) Director of the Department of Energy, Dr. Mark Bynoe, today, announced that United States oil company ExxonMobil and its partners Hess International and CNOOC International have made their 15th oil discovery, at the Mako-1 Well southeast of the Liza field in the Stabroek Block.
“This discovery by ExxonMobil and its partners comes on the heels of the start of oil production. The Cooperative Republic of Guyana is experiencing a truly historic moment that has all the ingredients to facilitate a paradigm shift towards sustained economic transformation.” Dr. Bynoe said.
This discovery adds to the previously announced estimated recoverable resource of more than 6 billion oil-equivalent barrels on the Stabroek Block.The Mako-1 Well encountered approximately 164 feet (50 meters) of a high-quality oil-bearing sandstone reservoir.
The Well which was drilled in 5,315 feet (1,620 meters) of water, is located approximately six miles (10 kilometers) southeast of the Liza field, which began commercial production of oil on Friday, December 20, 2019.
“The Government of the Cooperative Republic Guyana will continue to conscientiously and assiduously to ensure that petroleum revenues benefit all Guyanese through the ‘Decade of Development’ 2020-2029. The Department of Energy will continue to be at the vanguard of this effort through, inter alia, strengthening its capacity and building out the legislative framework to allow for effective and efficient management of Guyana’s hydrocarbon resources and enhanced value retention,” Bynoe added.
This newest geological discovery will have to undergo further appraisal to determine its commercial value and the resource base.The Liza Phase 1 development will produce up to 120,000 barrels of oil daily utilising the floating production storage and offloading vessel (FPSO), Liza Destiny.The Stabroek Block is 6.6 million acres (26,800 square kilometers).
TULLOW- NEW DISCOVERY AT CARAPA
January 2 2020 7:27 AM
Tullow Oil encountered approximately four metres of net oil pay at its Carapa-1 exploration well, drilled on the Kanuku licence offshore Guyana, where Repsol Exploración Guyana is the operator with a 37.5pc stake. Tullow Guyana holds 37.5pc . Total E&P Guyana hold 25pc.
In early trading shares in Tullow Oil are down almost 7pc.
Preliminary results of drilling, wireline logging, pressure testing and sampling of reservoir fluid indicate the discovery of oil in Upper Cretaceous age sandstone reservoirs.
Rig site testing has indicated a sulphur content of less than 1pc.
Mark MacFarlane, chief operating officer at Tullow Oil, said: “The Carapa-1 result is an important exploration outcome with positive implications for both the Kanuku and Orinduik blocks.
While net pay and reservoir development at this location are below our pre-drill estimates, we are encouraged to find good quality oil which proves the extension of the prolific Cretaceous play into our acreage.”
Tullow would now integrate the results of the three exploration wells drilled in the adjacent licences into its Guyana and Suriname geological and geophysical models before deciding the future work programme.
The discovery suggests the extension of the Cretaceous oil play from the Stabroek licence southwards into the Kanuku licence. While net pay is lower than pre-drill forecasts, the 27 degree API oil “supports the significant potential of the Cretaceous play on both the Kanuku and adjacent Orinduik licences”.
Last year, in one day shares in Tullow fell by 70pc after CEO Paul McDade quit and the company lowered its production forecasts. Worth over £14bn at the height of its valuation, today the company is a shadow of those heydays, with a market capitalisation of £900m.
The Valaris EXL II jack-up rig drilled the Carapa-1 well to a Total Depth of 3,290 metres in 68 metres of water and the well will now been plugged and abandoned.