Guyana moves to up production at Liza field

Mar 25, 2022 News

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– as global supply pressures increase
– Crude cargo heads to Europe for first time next month

Kaieteur News – ExxonMobil and its partners, Hess Corporation and CNOOC, are gearing to ramp up oil production at the Stabroek Block’s Liza Field as the Russia-Ukraine crisis continues to drive more supply shocks in the global oil market.

In fact, Chief Executive Officer (CEO) of Hess Corporation, John Hess, recently noted at the 50th Annual Scotia Howard Weil Energy Conference that the Liza Destiny, Guyana’s first floating, production, storage and offloading vessel (FPSO) is up for a planned turn around this month. He said this includes production optimization. Previously, Hess’ Chief Operating Officer, Greg Hill had disclosed that such works could increase the Liza Destiny’s operating capacity to the range of 140,000 barrels to 150,000 barrels of oil per day. The vessel is currently operating at nameplate capacity which totals 120,000 barrels of oil per day.
As for the Liza Unity, Guyana’s second FPSO which began first oil last month is also poised to be optimized so that it can achieve nameplate capacity of 220,000 barrels of oil per day by month end. Hill had previously disclosed that the Liza Unity will also see a 10 to 15 percent increase in production later on.
Kaieteur News previously reported that the Liza Unity arrived in Guyana in October 2021, following construction in shipyards in China and Singapore. It is moored in water depth of about 1,650 meters and will be able to store approximately two million barrels of crude oil. The Liza Unity is the world’s first FPSO to be awarded the SUSTAIN-1 notation by the American Bureau of Shipping (ABS) in recognition of the sustainability of its design, documentation and operational procedures.
As production enhancements continue at the Liza Phase One and Two Projects, Guyana’s oil is expected to make a rare voyage this year to Europe as global market suppliers seek alternatives to Russian oil. This is according to a special report by Argus Media’s Amanda Hilow yesterday where it was noted that ExxonMobil placed the Suezmax tanker Homeric on subjects to travel from Guyana to Europe starting April 3 with a cargo of non-heated crude, according to shipping fixture reports. Argus Media also stated that the empty tanker is currently in transit to the FPSO Liza Destiny after recently offloading at Turkish refiner Tupras’ Tutunciftlik/Izmit refinery. Its information in this regard was pulled from Vortexa, an energy intelligence provider delivering the most comprehensive view of waterborne crude oil and refined oil products available today.
Argus Media disclosed that most medium sweet Liza crude has traveled to the US and Singapore since ExxonMobil started production at the deepwater Stabroek block in December 2019. A small volume went to Europe for the first time in November 2021 — when less than 10,000 barrels was loaded for delivery to the UK, likely co-loaded with a larger cargo for Singapore that loaded the same month, according to an analysis of customs data.

OTHER PROJECTS ON TRACK
Hess’ Boss was keen to note that the third development on the Stabroek block at the Payara Field, utilizing the Prosperity FPSO, is on track for production startup in 2024 with a production capacity of approximately 220,000 gross barrels of oil per day.
He said too that the field development plan and application for environmental authorization have been submitted for government and regulatory review for the fourth development at Yellowtail, with a production capacity of approximately 250,000 gross barrels of oil per day and startup expected in 2025. Approval is likely by month end.
The CEO said his company continues to see potential for at least six FPSOs with a production capacity of more than 1 million gross barrels of oil per day at the Stabroek Block in 2027, with the potential for up to 10 FPSOs to develop the gross discovered recoverable resources currently estimated at more than 10 billion barrels of oil equivalent.
Hess said, “We look forward to continuing to work with the Government and the people of Guyana to realize the remarkable potential of the Stabroek Block for the benefit for all stakeholders. The world will need these low cost oil resources to meet future energy demand and help ensure an affordable, just and secure energy transition.”
The Stabroek Block is 6.6 million acres. ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.

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