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Tuesday, Oct 26th, 2021

Payara approved: ExxonMobil sanctions $9 billion oilfield scheme off Guyana

Third development on the prolific Stabroek Block to commence production in 2024

US supermajor ExxonMobil has taken a final investment decision on its Payara development, on the Stabroek Block, offshore Guyana.

ExxonMobil confirmed late Wednesday it was moving ahead with the $9 billion development after receiving government approvals.

It follows reports last week the company was closing in on gaining the necessary approvals with Guyana’s new administration after delays in the run up to the country’s elections.

The Payara development will target an estimated resource base of 600 million barrels of oil equivalent via the drilling of up to 41 wells from 10 drill centres, including 20 production wells and 21 injection wells.

First oil is anticipated in 2024, with the development to have a production capacity of 220,000 barrels per day.

Output from Payara will be handled by SBM Offshore’s Prosperity floating production, storage and offloading vessel, which is currently under construction and will have a production capacity of 220,000 bpd of oil and 400 million cubic feet of gas per day, along with a water injection capacity of 250,000 bpd.

Prolific block

It marks the third development on the Stabroek Block, with the Liza Phase 1 development starting up in December last year, while the under development Liza Phase 2 development remains on track to commence production in 2022.

Output from Liza Phase 1 is handled via the SBM Offshore-owned Liza Destiny FPSO, offering production capacity for 120,000 bpd of oil and 170 MMcfd of natural gas.

Another floater — the Liza Unity — will also be supplied by SBM but, like Prosperity, will be able to process 220,000 bpd of oil and 400 MMcfd of gas. The Liza Unity is currently under construction in Singapore but is anticipated to enter operation in 2022 with the start-up of Liza Phase 2.

ExxonMobil claims the 18 discoveries made within the block so far have established the potential for at least five FPSO vessels producing more than 750,000 bpd of oil by 2026.

“ExxonMobil is committed to building on the capabilities from our Liza Phase 1 and 2 offshore oil developments as we sanction the Payara field and responsibly develop Guyana’s natural resources,” president of ExxonMobil Upstream Oil & Gas Company, Liam Mallon, said.

“We continue to prioritise high-potential prospects in close proximity to discoveries and maximise value for our partners, which includes the people of Guyana.”

Other discoveries on the Stabroek Block currently under evaluation by ExxonMobil include the Redtail, Yellowtail, Mako and Uaru resources, and the company plans to have five drillships operating offshore Guyana by the end of this year.

The Stabroek Block covers 26,800 square kilometres and ExxonMobil has already discovered an estimated 8 billion oil-equivalent barrels of recoverable resources.

ExxonMobil operates the offshore block with a 45% interest and is partnered by fellow US company Hess on 30% and China’s CNOOC Ltd with the remaining 25% equity.

Source: Upstream | This text was excerpted from the media outlet cited on October 1, 2020 and is provided to Noia members for information purposes only. Any opinion expressed therein is neither attributable to nor endorsed by Noia.