Hess Corporation says work on the 120,000 bpd Liza Destiny is almost complete with commissioning activities underway. The company also said there is a possibility of first oil coming by year-end from the Liza Phase 1 Development project.
Speaking to investors on an earnings call on Thursday, Hess Corporation’s Chief Operating Officer, Greg Hill, said the Liza Destiny will arrive offshore the South American country in Q3, 2019. “At the Keppel yard in Singapore, installation of topside modules is now complete on the 120,000 barrel of oil per day Liza Destiny FPSO and commissioning activities are underway. The vessel is expected to arrive offshore Guyana in the third quarter of 2019.”
Responding to a question on the likelihood of oil production beginning before the scheduled 2020 timeline, Hill said, “The project is ahead of schedule. There is a chance that it will be on before that. I think it’s the reason that there is a little bit left in the schedule, is because we started all the open water activities. So, I think it’s prudent to stick with our buy first quarter 2020 for now until everything shows up in theater and you start the open water work.”
Hill said drilling of the Liza Phase 1 development wells is proceeding at the Stabroek Block and installation of subsea infrastructure is well advanced with installation of subsea umbilicals, risers and flow lines planned for the second quarter of 2019.
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 Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 percent interest.