ExxonMobil will make its Final Investment Decision (FID) on the giant Liza Phase 2 Development offshore Guyana following key approvals from regulators which the company hopes to receive by year end.
Country Manager, Rod Henson, told OilNOW the Environmental Impact Assessment (EIA) report has been submitted to the EPA for Environmental Authorization. The company is also awaiting approval for the Liza Phase 2 Development Plan which is being reviewed by the Guyana Geology and Mines Commission (GGMC).
“We hope that we would receive approvals later this year and then we can proceed ahead,” he said during an interview at the company’s New Market Street, Georgetown office on Monday.
Already, SBM Offshore has been contracted to do the Front-End Engineering Design (FEED) for the Liza Phase 2 FPSO. The vessel will have double the capacity of the Liza Destiny FPSO which is currently being built in Singapore, also under contract with SBM. The Destiny will be used in the Liza Phase 1 Development and will bring first oil for Guyana in less than two years.
Henson pointed out that the FEED contract with SBM is preliminary since final approval from Guyana authorities is needed before the company can proceed. “We must get government approval before we head that far but we want to continue ahead to get some of that early engineering work done so that we can proceed with haste once we get the approvals.”
When compared to the 17 wells being drilled for Liza Phase 1, approximately 35-40 wells will be drilled at two subsea drill centers for the Phase 2 development. The FPSO will have an estimated production capacity of approximately 190,000 to 220,000 barrels of oil per day while the Liza Destiny will produce around 120,000 barrels per day.
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 Nexen Petroleum Guyana Limited holds 25 percent interest.