ExxonMobil Delays Some Guyana Oil Drilling

Instant Max AI

(Argus, 7.Apr.2020) — ExxonMobil is deferring some longer-term offshore drilling in Guyana as a result of capital spending cuts, “creating a potential delay in production start-up of six to 12 months,” the US major said today.

The unspecified delays will not affect current operations at the Liza field on the deepwater Stabroek block where the company has forecast light sweet crude production of 120,000 b/d in a first phase.

The firm did not indicate current Guyana production or whether its 750,000 b/d target for 2025 remains intact.

Guyana produced 56,320 b/d in January, 58pc higher than December when production began, according to the finance ministry’s latest production report.

ExxonMobil is the Stabroek operator in a consortium that includes US independent Hess and Chinese state-owned CNOOC unit Nexen. The block holds an estimated 8bn bl of oil equivalent reserves following a string of discoveries since 2015.

“Current operations onboard the Liza Destiny production vessel are unaffected, and start-up of the second phase of field development remains on target for 2022, with the Liza Unity production vessel currently under construction,” ExxonMobil said.

“As the company waits for government approval to proceed with a third production vessel for the Payara development, some 2020 activities are now being deferred, creating a potential delay in production start-up of six to 12 months.”

The company said it “will adjust operations as necessary with safety and the protection of the environment as priorities,” the Guyana office said.

The second phase of the Liza development includes the Liza Unity floating, production, storage and offloading (FPSO) vessel that is designed to produce up to 220,000 b/d.

Start-up of a 30-well project was scheduled for mid-2022, but the company has not said whether this timeline will be affected.

ExxonMobil had scheduled the start-up of the 45-well Payara project for 2023, producing 220,000 b/d using the Prosperity FPSO.

“Developing the numerous world-class deepwater discoveries offshore Guyana remains an integral part of ExxonMobil’s long-term growth plans,” the company said today.

By Canute James

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