Sixth FPSO by 2027 - Exxon says first six could wipe out half of Guyana’s proven reserves

Sixth FPSO by 2027 – Exxon says first six could wipe out half of Guyana’s proven reserves

Mar 04, 2021 News

By Shikema Dey

ExxonMobil’s Senior VP, Neil Chapman.

The Liza Destiny FPSO

Kaieteur News – It was only a few weeks ago that Kaieteur News reported that ExxonMobil and its joint venture partners, Hess and CNOOG, are in full speed to consider its fifth production development in Guyana’s Stabroek Block, even though they have yet to complete the Field Development Plan for their fourth intended development.
In fact, the second and third developments are yet to be on stream.
Now, the companies have announced plans to have the sixth production development in the Stabroek Block on stream by 2027. That addition, according to one of Exxon’s Senior Vice President, Neil Chapman, could develop between “40 to 50 percent” of the nine billion barrels of oil discovered to date.
In simple terms, those six Floating Production, Storage and Offloading (FPSO) vessels could wipe out half of Guyana’s proven reserves in the Stabroek block.
This planned pace of development appears to be in keeping with plans the company announced to have a total of 10 FPSOs operating in the Stabroek block.
Chapman told investors yesterday at the company’s Investor Day 2021, “We will continue to work closely and in partnership with the Government and anticipate their support to maintain future development pace consistent with what we have demonstrated to date.”
An analysis done by Kaieteur News determined that it is highly likely that ExxonMobil will wipe out the proven reserves of the Stabroek Block in less than two decades.
Using a simple projection of production numbers based on public statements by the company and its JV partners, Kaieteur News found that ExxonMobil could wipe out the proven reserves by 2036.
Rystad Energy, an energy research and business intelligence company, projected mid-2020 that ExxonMobil will be able to place one FPSO offshore Guyana every year for the next 10 years.
If these projections are accurate, the 10th vessel will start producing in 2031.
By the end of the first year, after the 10th FPSO is placed, ExxonMobil would have wiped out 4.14 billion barrels of oil, leaving a little over three billion barrels left.
In the following years, it will produce about 730 million barrels of oil in each year. By 2032, there would be 2.32 billion barrels left. By 2033, that would be reduced to 1.6 billion barrels.
By 2036, there would be nothing left.

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