EXXON prepares to pump oil in Guyana in 2020

30 June 2017

ExxonMobil has begun to mobilise for the first phase of oil production on its Liza field, offshore Guyana, following the formal granting of a production licence by Guyana’s Ministry of Natural Resources on June 15. An environmental permit had been issued earlier on June 1 by the Guyana Environmental Protection Agency.

Following the approval, ExxonMobil and its partners CNOOC Nexen Petroleum Guyana Limited and Hess Guyana Exploration Ltd, announced they would proceed with the Liza Phase 1 development, which is expected to see oil begin to flow in 2020, five years after the discovery of the field.

The development will bring to Guyana unprecedented employment, skills, economic development and revenue.

The Liza Phase 1 development plan includes completion of a subsea production system, and a floating production, storage and offloading (FPSO) vessel designed to accommodate up to 120,000 barrels of oil per day. Phase 1 is expected to cost just over US$4.4bn, and result in the recovery of around 450m barrels of oil.

The company has also announced positive results from the Liza4 well, with gross recoverable resources for the Stabroek block now estimated at 2bn to 2.5bn oil-equivalent barrels, which includes its Liza and other successful exploration wells on Liza Deep, Payara and Snoek.

Following the announcement, ExxonMobil’s local affiliate in Guyana, ESSO Exploration & Production Guyana Ltd and the US-based development company DAI Global LLC, said that they would establish a centre in July to help local enterprises better position themselves to take advantage of the opportunities that are likely to arise.

According to the company, it will help local companies build their capacity and improve their competitiveness in sectors that serve the oil and gas industry. The company expects to focus primarily on helping develop local vendors to serve key sectors including safety equipment, marine operations, offshore supply and civil construction. It said that it would also provide mentoring, coaching and access to financial support as well as information on safety, technical standards, procurement opportunities and project-specific information.

Following government’s approval of its production licence, ExxonMobil advertised for a range of services to enable it to scale up its operations to pump oil in 2020.

The company said that it is seeking contractors for support services for helicopter operations, maintenance and ground services, as well as platform supply vessels, a multi-purpose intervention vessel and tanker assist tugs. It is also seeking freight forwarding services such as packing, transport, clearance and expediting of materials to and from major international locations, from Guyana and Trinidad. ExxonMobil is also seeking to rent or purchase offshore cargo baskets and containers. Exxon-Mobil says that the companies offering such services must be registered in Guyana or other CARICOM countries and on the supplier portal located at www.exxonmobil.com/guyanacontractors.

This is an extract from the Caribbean Council’s leading weekly editorially independent publication, Caribbean Insight, which provides in depth information on current economic, political and commercial developments in the Caribbean and news on events in Europe and the US that affect the region. Business people, academics, and those with a general interest in the Caribbean find it an invaluable tool for developing and maintaining knowledge and providing an insight into political, economic and commercial events in the region.

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