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Exxon To Proceed With Liza Oil Field Development

Company Receives Approval From Guyana Ministry
posted onJune 16, 2017

In Guyana, the Ministry of Natural Resources has issued a production licence for the Liza field. Approving the development plan, the ministry expect production to begin in 2020.

The field, located off the coast of Guyana, is one of the biggest oil discoveries in the past decade. Phase 1 is expected to cost just over $4.4 billion, which includes a lease capitalization cost of approximately $1.2 billion for the FPSO facility, and will develop approximately 450 million barrels of oil.

The Liza field is part of the large Stabroek block, which is off a border region that is claimed by Guyana's neighbor, Venezuela, in a territorial controversy dating back more than a century. The area, however, functions in practice as Guyanese territory.

Liam Mallon, president, ExxonMobil Development Company, said: ““We’re excited about the tremendous potential of the Liza field and accelerating first production through a phased development in this lower cost environment,”. He added “We will work closely with the government, our co-venturers and the Guyanese people in developing this world-class resorce that will have long-term and meaningful benefits for the country and its citizens.”

The Liza field is approximately 190 kilometres offshore in water depths of 1,500 to 1,900 meters. Four drill centres are envisioned with a total of 17 wells, including eight production wells, six water injection wells and three gas injection wells.

The Liza field is part of the Stabroek Block, which measures 6.6 million acres, or 26,800 square kilometres. Esso Exploration and Production Guyana Limited is an operator and holds a 45 percent interest in the block.