Exxon Mobil Corp. (XOM) said it has made a final investment decision to proceed with the first phase of development for the Liza field, one of the largest oil discoveries of the past decade, located offshore Guyana. The development received regulatory approval from the government of Guyana.
The Liza Phase 1 development includes a subsea production system and a floating production, storage and offloading or FPSO vessel designed to produce up to 120,000 barrels of oil per day. ExxonMobil noted that production is expected to begin by 2020, less than five years after discovery of the field.
The Liza field is part of the Stabroek Block, which measures 6.6 million acres, or 26,800 square kilometers. Esso Exploration and Production Guyana Limited is operator and holds a 45 percent interest in the block. Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent.
Esso Exploration and Production Guyana Limited is continuing exploration activities and operates three blocks offshore Guyana - Stabroek, Canje and Kaieteur. Drilling of the Payara-2 well on the Stabroek block is expected to commence in late June and will also test a deeper prospect underlying the Payara oil discovery.
Exxon Mobil also announced positive results from the Liza-4 well, which encountered more than 197 feet of high-quality, oil-bearing sandstone reservoirs that will underpin a potential Liza Phase 2 development.
Gross recoverable resources for the Stabroek block are now estimated at 2 billion to 2.5 billion oil-equivalent barrels, which includes Liza and other successful exploration wells on Liza Deep, Payara and Snoek.
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