Developmental activities for Payara to conclude in July

May 15, 2023 News

Guyana’s third FPSO, Prosperity

Kaieteur News – Ahead of first oil, at Guyana’s third oil producing project, the Payara development, Esso Exploration and Production Guyana Limited (EEPGL) has been conducting offshore works in the Stabroek Block, which is expected to wind down in July.

According to a government notice published in Sunday’s edition of Kaieteur News, it was explained that on May 13, the operator for ExxonMobil continued its developmental activities in the Payara Field of the Stabroek Block of Guyana’s Exclusive Economic Zone (EEZ).

It also stated that the exercise is scheduled to conclude on July 5, 2023, and will incorporate the use of OSV Delta Commander which will display international signals for vessels engaged in such activity.

The area is located approximately 102.27 nautical miles or 189.4 kilometers off the Coast of Guyana and covers an area of 136.8 square nautical miles or 469.3 square kilometers.

The Floating Production Storage and Offloading (FPSO) vessel, Prosperity, which is expected to produce around 220,000 barrels of oil per day during its initial phase and was constructed to store a total of two million barrels of oil, has already arrived in Guyana.

The FPSO’s arrival was announced by ExxonMobil Guyana, which in a brief media statement said it is excited to contribute to Guyana’s energy future. The vessel was constructed by Dutch ship builder, SBM Offshore.

Presently, two FPSOs are operating in the Stabroek Block, including the Liza Destiny and Liza Unity. In December 2019, the Liza Destiny produced first oil. This was followed by the startup of Liza Two in February 2022 by the Liza Unity. Currently, more than 380,000 barrels per day is being produced. Exxon said production from the Prosperity vessel is expected to push daily production to some 600,000 barrels a day in 2024.

“Installation campaigns are ongoing and development drilling is underway to support Prosperity’s start-up later this year,” the company stated.

It must be noted that even as Guyana prepares for greater production activities in the Stabroek Block, the country is yet to secure full liability coverage to cover expenses associated with an oil spill.

Presently, the developer has assured that US$600 million is in place per event, while a parent company guarantee by ExxonMobil is currently the subject of litigation before the local Courts.

Experts have however warned that this figure would not be sufficient to cleanup a massive spill in the Stabroek Block, as past experiences amounted to billions of US-dollars. Moreover, these costs continue to climb as citizens who lost their livelihoods continue to mount legal challenges.

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