ExxonMobil started development drilling on the Liza Phase 1 offshore Guyana with start of production expected in 2020, ExxonMobil said Tuesday.
Development drilling began in May for the first of 17 wells planned for Phase 1, laying the foundation for production startup in 2020, the company said.
The company and its co-venturers discovered estimated recoverable resources of more than 3.2 billion oil-equivalent barrels on the Stabroek Block.
'We are well on our way to producing oil less than five years after our first discovery, which is well ahead of the industry average for similar projects,' Liam Mallon, president of ExxonMobil Development Company, was quoted as saying.
'The Liza development and future projects will provide significant economic benefits to Guyana,' Mallon added.
Liza Phase 1 is expected to generate over $7 billion in royalties and oil revenue for Guyana over the life of the project, according to company.
Liza Phase 1 involves the conversion of an oil tanker into a floating, production, storage and offloading (FPSO) vessel named Liza Destiny, along with four undersea drill centers with 17 production wells.
Construction of the FPSO and subsea equipment is underway in more than a dozen countries.
Liza Destiny will have a production capacity of 120,000 barrels of oil per day. A second FPSO, with a capacity of 220,000 barrels per day, is planned as part of the Liza Phase 2 development, and a third is under consideration for the Payara development. Together, these three developments will produce more than 500,000 barrels of oil per day.
The Stabroek Block is 6.6 million acres (26,800 square kilometers). Esso Exploration and Production Guyana Limited is the operator and holds a 45 percent interest. Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds a 25 percent interest, the company said.
By Huseyin Erdogan