ExxonMobil sees its growing floating production, storage and offloading vessel (FPSO) network in the Stabroek Block creating opportunities for low-cost tiebacks from smaller oil accumulations offshore Guyana.
Neil Chapman, Senior Vice President of ExxonMobil, said the company’s planned eight-FPSO buildout in Guyana would be important for development beyond the end of this decade.
“We have eight FPSOs in the southeast of the Stabroek Block. That’s really, really critical for the next decade and beyond because it gives you this opportunity for really low-cost tiebacks,” Chapman said. He made the comments during the Bernstein 42nd Annual Strategic Decisions Conference on May 28.
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A tieback allows production from a nearby reservoir to be connected to an existing production facility. This can allow companies to develop smaller resources without building a separate standalone FPSO.
Chapman said the approach could allow ExxonMobil to produce smaller oil pockets near its Stabroek facilities with limited additional capital.
“In other words, you got no more capital in the ground or limited capital and you can drill small pockets of oil that are relatively close and run them back to those vessels,” Chapman explained.
ExxonMobil currently has four FPSOs producing offshore Guyana. Chapman said all four are operating above their design rates.
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He said the expanded network of FPSOs would take Guyana’s production capacity to 1.7 million barrels per day by the end of 2030.
Guyana is one of ExxonMobil’s main upstream growth areas, alongside the Permian Basin and liquefied natural gas. Chapman said the Stabroek Block remains large and continues to hold development potential.
ExxonMobil Guyana operates the Stabroek Block, where production started in 2019.
