Monday, September 26, 2022

At US$1.5 billion a piece, Exxon says 10 FPSOs by 2030 remain in play for Guyana

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By the end of this decade, ExxonMobil envisions up to ten floating production storage and offloading vessels (FPSO) operating offshore Guyana. This is according to the ExxonMobil Guyana President, Alistair Routledge in an article published by Senior Contributor to Forbes, David Blackmon.

“Once you find a commercially viable well, you need to invest in the right infrastructure to get the resource safely out of the ground and to market. Right now, we have two floating production, storage and offloading vessels operating offshore – at an estimated cost of more than $1.5 billion a piece; by the end of the decade, we envision up to 10 such production vessels operating offshore,” Routledge is reported as saying.

Two developments offshore Guyana are up and running – namely Liza 1 and Liza 2. Combined, the Destiny and Unity FPSO vessels, built and operated by SBM Offshore, are producing around 360,000 barrels of oil a day.

In the project pipeline are the Payara and Yellowtail developments set to come on stream by 2023 and 2025, respectively. By 2027, through these four projects, a fifth called Uaru, and at least one more project, oil production in Guyana is expected to ramp up to about 1.2 million barrels daily.

If six oil production vessels can take output offshore Guyana to 1.2 million barrels per day, imagine what 10 can do.

ExxonMobil plans to drill more than 60 exploration wells offshore Guyana in six years as it looks to unlock billions more of oil-equivalent barrels.

20 billion barrels projected at Guyana’s largest oil block; region is hotbed for investments, analyst says | OilNOW

In his Forbes interview, Routledge pointed out that Rystad Energy, the International Monetary Fund (IMF) and other global institutions recognise the importance of Guyana’s oil to the future of global crude supply. Guyana’s crude is low in sulfur, with a low production cost when compared to other developments globally.

“The IMF and others project that Guyana will become one of the main contributors to oil supply growth outside [the Organisation of Petroleum Exporting Countries] OPEC by 2025. Since 2015, more than 11% of the conventional oil discovered in the world has been found here — and, keep in mind, many parts of the basin remain unexplored,” Routledge highlighted.

Guyana delivered largest oil and gas discovery in 20 years, more to come – Hess | OilNOW

He recalled too that offshore operations in this South American nation are anticipated to emit 30% lesser greenhouse gasses by 2027 and what this means for the energy transition.

“Current events show how important flexibility will be during the energy transition,” Routledge added. “We need two things at the same time: reduced emissions and a reliable source of energy. ExxonMobil has a role to play in both, and ExxonMobil is increasing production with some of the lowest associated emissions.”

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