Phase 1 will produce 450 MMBO <\/p>\n
ExxonMobil (ticker: XOM), Hess (ticker: HES) and CNOOC today announced FID for Phase 1 development of the Liza field in offshore Guyana. <\/p>\n
Initially discovered in May 2015, the Liza field is located about 120 miles offshore from Guyana, in about 5,700 feet of water. Liza is in the Stabroek Area, a large offshore lease block owned by the three partner companies. Hess reports that Stabroek is 6.6 million acres in size, or 1,150 times the size of a standard GOM block. <\/p>\n<\/p>\n
(Click to enlarge) <\/p>\n
Source: Hess <\/p>\n
120 MBOPD peak production planned <\/p>\n
Phase 1 of development of the Liza field will involve a total of 17 wells, drilled from four drill centers. Eight wells will produce oil, while six will inject water into the reservoir and three will inject gas. A floating production, storage and offloading vessel will process production. ExxonMobil estimates Phase 1 will have peak production around 120 MBOPD. In total, the operation will recover about 450 MMBO. ExxonMobil reports that Phase 1 will cost just over $4.4 billion, including $1.2 billion for the FPSO. <\/p>\n
Based on Hess reports of its share of development costs (not including the FPSO cost), the companies will spend about $370 million this year, $830 million in 2018 and $1.1 billion in 2019. The remaining $900 million will be spent in 2020 and 2021, but the timing is less certain. First oil is expected in 2020, less than five years after initial discovery. <\/p>\n
Further discoveries support more development <\/p>\n
Additional exploratory work is in progress, as the Stabroek block is large enough to hold many different plays. ExxonMobil reports that the recently-drilled Liza-4 well encountered nearly 200 feet of high-quality, oil-bearing sandstone reservoirs.\" While the area explored by Liza-4 will not be developed in Phase 1, the successful result will be a major factor in considering Phase 2. With the success of Liza-4, Hess estimates gross discovered recoverable resource for the Stabroek block is between 2 and 2.5 billion barrels. <\/p>\n
ExxonMobil is the operator of the Stabroek block, and holds a 45 percent interest. Hess owns a 30 percent stake, while CNOOC owns 25 percent. <\/p>\n
By Oil and Gas 360 <\/p>\n
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Exxon Moves Forward With Offshore Guyana Project - OilPrice.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Phase 1 will produce 450 MMBO ExxonMobil (ticker: XOM), Hess (ticker: HES) and CNOOC today announced FID for Phase 1 development of the Liza field in offshore Guyana. Continue reading