As ExxonMobil gears up for production from Guyana’s first oil well by mid-2020, the company yesterday announced that it has awarded contracts to US-based, SBM offshore for a floating production storage and offloading (FPSO) vessel.
“We would anticipate an increase in activity in 2019, preparing for first oil production by mid-2020”, Public & Government Affairs Advisor at ExxonMobil Corporation Kimberly Brasington told Stabroek News when contacted yesterday.
Both ExxonMobil and the company which receiv-ed the contracts for the Liza well, SBM Offshore, yesterday released press statements informing of the awards for works.
“Liza development activities are steadily progressing, and we’re excited to reach this important milestone,” a press release from ExxonMobil quoted its President, Neil Duffin, as saying.
“We look forward to working with the government of Guyana to develop its valuable resources, which have the potential to provide long-term, sustainable benefits to the country”, he added.
The company asserted that the contract award was a significant step toward first oil production here even as it informed that its production licence and development plan have been filed with government.
“Under the contracts, SBM Offshore will perform front end engineering and design for the FPSO, and, subject to a final investment decision on the project in 2017, will construct, install and operate the vessel…ExxonMobil submitted an application for a production license and its initial development plan for the Liza field in early December. The development plan, submitted to the Guyana Ministry of Natural Resources, includes development drilling, operation of the FPSO, and subsea, umbilical, riser and flowline systems,” ExxonMobil’s statement said.
The Liza field has a potential recoverable resource estimate in excess of 1 billion oil-equivalent barrels and is located in the Stabroek block approximately 120 miles (193 kilometers) offshore Guy-ana. The Stabroek block currently comprises 6.6 million acres (26,800 square kilometers). Esso Exploration and Produc-tion Guyana Limited is the operator and holds a 45 percent interest in the Stabroek block. Hess Guyana Exploration Ltd. holds a 30 percent interest, and CNOOC Nexen Petroleum Guyana Limited holds a 25 percent interest,”
“We are proud that ExxonMobil has awarded SBM Offshore contracts for the Liza FPSO, starting with the front-end engineering, which forms an important part of a significant offshore development project. Our dedicated team is looking forward to cooperate closely with the ExxonMobil team to make this project a success. This award underlines the fact that experience matters across the entire FPSO life cycle” SBM Offshore CEO Bruno Chabas stated in that company’s release.
Last month, Exxon Mobil in collaboration with its partners Nexen Energy and Hess Corpora-tion, officially gave notice of its find of commercial quantities of oil in the area via a letter to the Minister of Natural Resources, Raphael Trotman at the Ministry’s boardroom, Brickdam.
GINA had said that Trotman stated that the notification given by the oil company is one that is required by Section 31 of the Petroleum Act. The Minister said that it is the first time in Guyana’s 50-year history as an independent nation, that the section of the Act is being activated.
“This is a profound and watershed moment in the development of our country … so there is great humility and great responsibility that comes with the handing over and receiving of this letter,” Trotman said at the handing over.
Vice President of Exxon Mobil, Erik Oswald, along with representatives from Nexen Energy and Hess Corporation said that they are excited about the prospects of being able to produce the oil found in the Stabroek block.
“What you are seeing today, is the beginning of a very large effort which will unfold over the next few years as we finalise our plans, and implement them, trying to develop this field,” Oswald stated.
