Exxon’s Chinese partner sees Stabroek Block as future ‘cash-cow’

Dec 23, 2019 News

China’s National Offshore Oil Company (CNOOC), a 20 per cent partner in the Stabroek Block joint venture which commenced producing oil offshore Guyana on Friday last, sees the oil field as a key driver of the company’s future production growth.
This is according to CNOOC’s Chief Executive Officer (CEO) and President, Xu Keqiang, who in making the announcement on Friday said, “the Stabroek block continues to achieve unparalleled success, which will be a key driver of our production growth.”
According to the Company, the Liza Phase 1 development project is located in the Stabroek block offshore Guyana and has one Floating, Production, Storage and Offloading (FPSO) vessel and 17 subsea wells.
The offshore oilfield is expected to reach its peak production of approximately 120,000 barrels of crude oil per day in the coming months.
The CNOOC CEO, in announcing first oil on behalf of his company said “we are very pleased with the commencement of production ahead of schedule.”
It was noted that the current discovered recoverable resources of Stabroek Block are estimated to be more than 6 billion barrels of oil equivalent.
According to the Chinese partners “at least five FPSOs are expected to be producing more than 750,000 barrels of oil per day from the Stabroek Block by 2025.”

CNOOC Petroleum Guyana Limited, a wholly owned subsidiary of CNOOC Limited, holds 25 per cent interest.
Esso Exploration and Production Guyana Limited (EEPGL) is the operator and holds a 45 per cent interest, while Hess Guyana Exploration Ltd. holds 30 per cent interest.
EEPGL in its announcement on Friday last, lauded the start of production from the Liza field offshore Guyana ahead of schedule and less than five years after the first discovery of hydrocarbons, “which is well ahead of the industry average for deepwater developments.”
Head of State, President David Granger, in a subsequent announcement to the nation, issued a proclamation declaring December 20, as ‘National Petroleum Day.’
The President said that the proclamation will serve to remind citizens of their duty to protect the country’s patrimony and to ensure the sustainable management of the finite hydrocarbon resources.
Granger also noted that petroleum production will be a transformative process in the country’s economic development, while noting that the sector will serve to stimulate increased employment and expand services.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News