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Wednesday, November 25, 2020

Liza Phase 1 production now averaging 105,000 bpd, peak output expected by December – Hess

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Gross production from the Liza Phase 1 Development at the Stabroek Block offshore Guyana has been averaging 105,000 barrels of oil per day in the last few weeks with a full ramp up in output expected by December.

This is according to Chief Operations Officer of Hess Corporation, Greg Hill, speaking on the company’s Q3 earnings call on Wednesday.

Hill said in the third quarter, gross production from Liza Phase 1 averaged 63,000 barrels of oil per day with 19,000 barrels going to Hess, which has a 30% stake in the Stabroek Block.

“Ongoing work to complete commissioning  of the natural gas injection system continues and once complete will enable the Liza Destiny Floating Production Storage and Offloading vessel…to reach its nameplate capacity of 120,000 gross barrels of oil per day in December,” Hill said.

Challenges encountered earlier this year with the gas reinjection system on the FPSO had resulted in operator ExxonMobil taking a decision to limit oil production in order to curb flaring.

“It is important to know that the delays in commissioning the gas injection system are mechanical in nature and the reservoirs and wells continue to deliver at or above the expectations,” Hill pointed out. “The design one, build many concept for the FPSOs will allow the learnings to be captured and applied to future projects. Production from the vessel has been averaging 105,000 barrels of oil per day for the last few weeks.”

Oil production began at Liza Phase 1 last December and phase 2 of the development is expected to start up in 2022. Hill said all preparatory work for this second project is progressing as planned with approximately 80 percent of the overall topsides, hull and subsea work already completed.

“ExxonMobil is arguably the best project manager in the world for this type of development and their operatorship greatly reduces execution risks,” Hill said.

To date, ExxonMobil has made 18 discoveries at the Stabroek Block amounting to approximately 9 billion barrels of oil equivalent resources.

In addition to Liza Phase 1 and 2, a third project at Payara has been sanctioned and is expected to get underway by 2024.

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