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Sunday, February 28, 2021

No final decision yet on second FPSO for Guyana – ExxonMobil

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OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

US super-major ExxonMobil says it has not yet made a final decision on a second Floating Production Storage and Offloading (FPSO) vessel for development and production operations offshore Guyana.With gross recoverable resources for the Stabroek block now estimated to be between 2.25 and 2.75 billion oil-equivalent barrels, which includes Liza and other successful exploration wells on Liza Deep, Payara and Snoek, there has been speculation that the super-major would be moving to secure a second FPSO. The company also announced on Tuesday that it had discovered additional oil in the Payara reservoir, increasing the total Payara discovery to approximately 500 million oil-equivalent barrels.

Prior to the announcement of the additional Payara discovery, OilNOW spoke with ExxonMobil Country Manager in Guyana, Rod Henson, who said the acquisition of a second FPSO is currently being studied but no decision has been made to move forward yet. “We are studying that question right now. So far what we have found is the Liza accumulation; world class discovery, real excited to have this first FPSO…the bottom line right now is that we are studying the issue. We continue to drill, we continue to do tests, and quite honestly, we just don’t know yet…,” he said.

However, with this new discovery at Payara, the super-major could now be closer to making a final decision on a second FPSO.

In 2016, ExxonMobil subsidiary Esso Exploration and Production Guyana Limited awarded SBM Offshore contracts for the first FPSO. Under the FPSO contracts, SBM Offshore is performing Front End Engineering and Design for the FPSO, and will construct, install and operate the vessel for the Liza development and production in Guyana.

The Liza field is located in the Stabroek block, which covers almost 27,000 square kilometres, approximately 193 kilometres offshore the South American country. Esso Exploration and Production Guyana Limited is the operator and holds a 45 percent interest in the Stabroek block. Hess Guyana Exploration Ltd. holds a 30 percent interest, and CNOOC Nexen Petroleum Guyana Limited holds a 25 percent interest.

Oil production is expected to begin in Guyana by mid-2020.

 

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