Liza Phase Two production dips in second half of April

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Production guidance from Hess Corporation for the Stabroek Block indicates a reduction in 2023 Q2 compared to the prior quarter, as Exxon moves to execute maintenance on the Liza Phase 2 project. 

Net production for Hess, a 30% stakeholder in the Block, was 112,000 barrels per day (bpd) during the first quarter of 2023, according to President and Chief Operating Officer, Greg Hill. 

“For the second quarter, net production from Guyana is expected to average between 105,000 and 110,000 barrels of oil per day, reflecting reduced capacity at Liza Phase 2 for planned maintenance,” Hill said.

This is consistent with data published by government for the month of April, which shows a dip in production at Phase Two. 

Chart shows oil production at Liza field in April 2023

Production offshore Guyana is constituted by Liza Phase 1, which produced 151,090 bpd in the first quarter, while Phase 2 produced 227,250 bpd. The Liza field produced a combined 378,340 bpd in the first quarter. 

Exxon expects to debottleneck Phase 2 to lift the production peak to 250,000 bpd. This will place the development on par with the larger projects – Yellowtail and Uaru – expected to achieve first oil in 2025 and 2026. 

Optimising production at Phase 2 is seen as critical to managing the profitability and attractiveness of production at the Liza field. Of the low breakeven rates of Exxon’s Guyana projects, Liza Phase 2 bears the lowest at US$25 per barrel. 

Exxon is the operator with a 45% stake in the Stabroek Block. CNOOC holds the remaining 25%.

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