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Oct 19, 2021 News
Kaieteur News – The Maritime Administration Department (MARAD) issued several notices over the past few days which disclosed that preparations are being made in the ExxonMobil-led Stabroek Block for the installation of the Liza Unity, Guyana’s second Floating, Production, Storage, and Offloading (FPSO) vessel. These activities are expected to conclude on December 31, 2021 and all mariners are required to maintain a wide berth to the OCV NORMAND INSTALLER, which will be supporting installation of the FPSO.
During an interview last week, Minister of Natural Resources, Vickram Bharrat, disclosed that the Liza Unity which was financed to the tune of US$1.14B should be in Guyana’s waters in two weeks to pump oil from the Liza Phase Two Project.
According to the Environmental Impact Assessment (EPA) for the project, ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) will develop the offshore resource via 33 development wells (including production, water injection, and gas re-injection wells) and will use a Floating Production Storage and Offloading vessel to process, store, and offload the recovered oil.
The Liza Unity FPSO will be connected to the wells via associated equipment, collectively referred to as Subsea Umbilicals, Risers, and Flowlines (SURF), to transmit produced fluids (i.e., oil, gas, produced water) from production wells to the FPSO, as well as treated gas and water from the FPSO to the injection wells.
During drilling and installation of the FPSO/SURF facilities, EEPGL has said that work may be performed in a subsea area within the project Development Area (PDA) which is located approximately 183 kilometres (approximately 114 miles) offshore (Figure EIS-2). The project will also involve use of onshore shorebase(s) and other support facilities and marine/aviation services to support development drilling, SURF and FPSO installation, production operations, and, ultimately, decommissioning.
Once installed, the Liza Unity is poised to produce up to 220,000 barrels of oil per day which is double the current production of the Liza Destiny oil ship.
Kaieteur News had previously reported that Dutch conglomerate, SBM Offshore, was awarded the front end engineering and design (FEED) contract for the FPSO in July 2018. The FPSO design is based on SBM Offshore’s Fast4Ward, which incorporates a new build, multipurpose hull combined with several standardised topsides modules.
The FPSO in early September had sailed away from Singapore to Guyana. The vessel was there for the topside integration phase and is expected to begin production in early 2022.
Once production kicks off, Liza Phase Two is expected to develop approximately 600 million barrels of oil. The project is set to cost Guyana approximately US$6 billion, and includes a lease capitalisation cost of approximately US$1.6 billion, for the Liza Unity FPSO vessel, which will be moored in water depth of about 1,600 meters and will be able to store around two million barrels of crude oil.
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