EXXON/HESS in GUYANA

EXXON/HESS in GUYANA.

There has been a flurry of activities in the Stabroek Block, since Exxon Mobil’s 2015 oil find in Guyana.

In May of that year, Exxon confirmed that more than 295 feet of high-quality oil-bearing sandstone reservoirs had been encountered at its Liza 1 exploration well.

In late June 2016, Exxon’s drilling results at Liza 2 revealed more than 58 meters of oil-bearing sandstone reservoirs in Upper Cretaceous formations.

The well was drilled to a depth of 5,475 meters at 1,692 meters water depth. Drilling results confirmed recoverable resources to be between 800 million and 1.4 billion barrels of oil equivalent. Data from the Liza 2 well test is being assessed.

The company has announced that it had made its third significant discovery in its drilling explorations offshore Guyana. Its partner, Hess Corporation, had noted that the Liza 3 exploratory well’s net value could be US$6.2 billion based on calculations from the Bank of Montreal (BMO) Capital Markets.

Guyana became an oil-producing nation in December 2019, when Exxon brought online the Liza Destiny FPSO.

Drilling on Payara well began on November 12, 2016, with initial total depth reached on December 2, 2016. January of the year 2017, the oil giant had announced it had struck oil in its Payara-1 well, targeting the same type of reservoirs as the wells.

Liza Unity, an under-construction FPSO that will be Guyana’s second offshore facility in production, remains on schedule for first oil in 2022, Hess Corp. announced. Guyana became an oil-producing nation in December 2019, when Exxon brought online the Liza Destiny FPSO.

Hess, a partner in the ExxonMobil operated Stabroek block the Liza Destiny is operating, said that Liza Destiny would reach full capacity of 120,000 gross bopd in June. Hess also said that Exxon has temporarily idled two of the four drilling rigs on the Stabroek Block due to pandemic-related travel restrictions.

Hess, in ExxonMobil operated Stabroek block the Liza Destiny is operating, said that Liza Destiny would reach full capacity of 120,000 gross BOPD in June 2020

As for the second phase of the Liza field which will be developed via a much larger FPSO – the SBM Offshore-supplied Liza Unity – Hess said it remained on target to achieve first oil in 2022. The Liza Unity will have a 220,000 bopd per day capacity. The China-built FPSO hull recently arrived in Singapore for topside integration.

SBM Offshore, the company that has been tasked with delivering the Liza Unity FPSO, last month said some delays in project execution would be unavoidable due to the Covid-19 lockdowns, but that the company was in close contact with clients and business partners to manage the situation, adjust execution planning and where appropriate create mitigation plans.

SBM Offshore will provide its trading update later this week when more info might be disclosed when it comes to the FPSO construction schedule.

When it comes to the Payara offshore oil field – Guyana’s third planned development – also in the Stabroek block – the partners have recently delayed works on the project.

Payara, with an expected production capacity of up to 220,000 gross bopd, might see a potential delay in the first production of six to twelve months beyond the initial start-up target in 2023, Hess said Thursday.