ExxonMobil has funded the $6bn Liza Phase 2 development offshore Guyana following the receipt of government and regulatory approvals.
The total development cost will include about $1.6bn leasing capitalisation cost for the Liza Unity floating production, storage and offloading (FPSO) vessel.
Overall, the Liza Phase 2 is planned to comprise six drill centres hosting around 30 wells, including 15 production, nine water injection and six gas injection wells.
Estimated to become operational in mid-2022, the Liza Phase 2 is expected to produce up to 220,000bpd of oil.
The move is expected to further support ExxonMobil’s plan to capitalise on the development potentiality of the Stabroek Block from where it aims to achieve production levels of 750,000bpd by 2025.
The Liza Phase 1 is scheduled to achieve first oil by the first quarter of next year. It will use the Liza Destiny FPSO and will produce up to 120,000bpd of oil at peak levels.
ExxonMobil Upstream Oil & Gas Company president Liam Mallon said: “With the government of Guyana and our partners, ExxonMobil is bringing industry-leading upstream capabilities to build upon Phase 1 and further develop the shared value of Guyana’s resources.
“We are actively pursuing significant development potential from numerous discoveries in the Stabroek Block.”
The Stabroek Block is spread over 6.6 million acres and 13 discoveries have been made to date.
Current discovered recoverable resources are estimated to be more than 5.5 billion barrels of oil equivalent from the block.
ExxonMobil affiliate Esso Exploration and Production Guyana operates the Stabroek Block with a 45% stake. Hess Guyana Exploration (30%) and CNOOC Petroleum Guyana (25%) are the other stakeholders.
ExxonMobil is expected to take the final investment decision for the third phase of development, Payara, in the block later this year, subject to government and regulatory approvals.