Chief Executive Officer (CEO) of Hess Corporation, John Hess has revealed that ExxonMobil will increase the capacity of the Liza Destiny floating, production, storage and offloading (FPSO) vessel this month. During the 50th Annual Scotia Howard Weil Energy Conference held virtually this week, Hess said the Liza Unity vessel which hit first oil in February is also expected to reach its nameplate capacity of 220,000 barrels of oil this month.
According to Hess, the Liza Destiny’s output can be optimized to produce up to 140,000 barrels of oil. The Liza Unity’s production capacity is also poised for increase later this year by 10 to 15 percent.
It therefore means that by the third quarter, Guyana could be producing well over 370,000 barrels of oil per day. The increased production and the prevailing oil prices (US$90 to US$100 Brent per barrel of oil ), would see Guyana’s Natural Resource Fund (NRF) earning well beyond the forecast US$1B of earnings.
Guyana Standard had reported that the Liza Unity arrived in October 2021, following construction in shipyards in China and Singapore. It is moored in water depth of about 1,650 meters and will be able to store approximately 2 million barrels of crude oil. The Liza Unity is the world’s first FPSO to be awarded the SUSTAIN-1 notation by the American Bureau of Shipping (ABS) in recognition of the sustainability of its design, documentation and operational procedures.
“We are proud to be a partner in the successful development of this world class oil resource and congratulate ExxonMobil as an operator for outstanding project execution,” CEO John Hess said.
He added, “We look forward to continuing to work with the Government and the people of Guyana to realize the remarkable potential of the Stabroek Block for the benefit for all stakeholders. The world will need these low cost oil resources to meet future energy demand and help ensure an affordable, just and secure energy transition.”
With respect to other projects, Hess said the third development on the block at the Payara Field, utilizing the Prosperity FPSO, is on track for production startup in 2024 with a production capacity of approximately 220,000 gross barrels of oil per day.
He also reminded that the field development plan and application for environmental authorization have been submitted for government and regulatory review for the fourth development at Yellowtail, with a production capacity of approximately 250,000 gross barrels of oil per day and startup expected in 2025.
At least six FPSOs with a production capacity of more than 1 million gross barrels of oil per day are expected to be online on the Stabroek Block in 2027, with the potential for up to 10 FPSOs to develop the gross discovered recoverable resources currently estimated at more than 10 billion barrels of oil equivalent.
The Stabroek Block is 6.6 million acres and ExxonMobil affiliate, Esso Exploration and Production Guyana Limited, is the operator with 45 percent working interest. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.
