Liza Phase 2 could push Guyana total oil production to 340,000 bpd by 2022

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US oil major ExxonMobil has confirmed that a process is underway that could see a Liza Phase 2 development getting underway as early as 2022. This combined with Liza Phase 1 production, set to come on stream in 2020, could push the South American country’s total output to around 350,000 bpd.

The company said on Thursday it has submitted an application to the Environmental Protection Agency (EPA) for environmental authorization as part of its plans for a potential production concept for Liza Phase 2.

A second Floating Production Storage and Offloading vessel (FPSO) will be used with a capacity to produce approximately 190,000 to 220,000 barrels of oil per day.  During the early stage of production operations, the FPSO is anticipated to produce an average of approximately 5,700,000 to 6,600,000 barrels of crude oil per month.  Liza Phase 1 will see an average of 100,000 to 120,000 barrels of oil per day in the initial stage of production. At this estimated rate, the FPSO Liza Destiny will produce an average of approximately 3,000,000 to 3,600,000 barrels of oil per month. Total oil production at the high end, could average around 350,000 barrels per day by 2022.

Industry analyst Wood Mackenzie has said oil production in Guyana could reach as high as 400,000 barrels per day by 2026 as multiple phases of development and production come on stream.

In announcing its 6th discovery in Guyana at the Ranger-1 reservoir last week, ExxonMobil said it adds to previous world-class discoveries at Liza, Payara, Snoek, Liza Deep and Turbot, which are estimated to total more than 3.2 billion recoverable oil-equivalent barrels in the Stabroek Block.

The 6.6 million acres (26,800 square kilometers) Stabroek Block is located on the continental slope between Guyana’s continental shelf and the deep marine plain of the tropical North Atlantic Ocean east of the Lesser Antilles.

Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.