Exxon starts production on third project without independent meters

Nov 15, 2023 ExxonMobil, News

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Kaieteur News – Guyana’s third Floating Production Storage and Offloading vessel (FPSO)- Prosperity- on Tuesday commenced oil production at the Payara project in the Stabroek Block.

The announcement by ExxonMobil Guyana Limited (EMGL), the operator of the Stabroek Block, comes at a time when the nation is yet to put systems in place to monitor the daily production rates independently on the three operational FPSOs.

The Payara development was approved by government in September 2020. Prosperity now joins the Liza Destiny and Liza Unity production vessels which came online in December 2019 and February 2022, respectively. The Prosperity FPSO arrived in Guyana in April this year and will develop an estimated resource base of more than 600 million barrels of oil.

In a statement yesterday, Exxon said the FPSO commenced production, ahead of schedule and will add some 220,000 barrels of oil per day (bpd), bringing the total production capacity in Guyana to approximately 620,000 (bpd). It explained that Prosperity is expected to reach initial production of approximately 220,000 (bpd) over the first half of 2024, as new wells come online. This additional capacity will be the third major milestone towards reaching a combined production capacity of more than 1.2 million barrels per day on the Stabroek Block by year-end 2027.

President of ExxonMobil Upstream Company, Liam Mallon said: “each new project supports economic development and access to resources that will benefit Guyanese communities while also helping to meet the world’s energy demand…we’re pleased to work in partnership with the Guyanese government to make reliable energy accessible and sustainable.”

Meanwhile, Chief Executive Officer (CEO) of Hess Guyana Exploration Ltd, John Hess in a separate statement indicated that the company is a proud partner. He said, “We are proud to be a partner in the successful development of this world class oil resource for the benefit of the people of Guyana and all other stakeholders and congratulate ExxonMobil as operator for outstanding project execution.” He added, “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 Ministry of Natural Resources (MNR) in a press statement said government welcomes first oil at Prosperity. It said the commencement of production at the Payara development is a significant milestone for the country as it ushers in additional revenue in support of Guyana’s economic development while helping to meet global energy demands. “The government is committed to utilising the revenues provided by this resource to further improve public infrastructure, the educational and healthcare systems and our various social programmes. Sustainable development and responsible environmental stewardship remain a priority of this government as we continue to manage these resources towards the prosperity of the Guyanese people and this great nation,” the ministry said.

In the meantime, EMGL said it anticipates six FPSOs will be in operation on the Stabroek Block by year-end 2027. Already preparations are ongoing for startup of Yellowtail and Uaru, the fourth and fifth projects, which will each produce approximately 250,000 barrels of oil per day. In the meantime, Exxon is working with the government of Guyana to secure regulatory approvals for a sixth project, Whiptail.

Exxon said in its statement that Prosperity joins the Liza Unity as two of the world’s first FPSOs to be awarded the SUSTAIN-1 notation by the American Bureau of Shipping in recognition of the sustainability of its design, documentation and operational procedures. “ExxonMobil’s Guyana developments are generating around 30% lower greenhouse gas intensity than the average of ExxonMobil’s upstream portfolio. According to the independent research firm Rystad Energy, they are also among the best performing in the world with respect to emissions intensity, outpacing 75% of global oil and gas producing assets,” the company pointed out.

It also highlighted that some 6,000 Guyanese are now supporting its activities in the country, representing more than two-thirds of the local oil and gas workforce. Additionally, since operations began in 2015, Exxon and its direct contractors have spent more than US$1.2 billion with more than 1,500 Guyanese suppliers. The Stabroek Block is 6.6 million acres, where to date over 38 commercial discoveries have been made. It is estimated to contain more than 11 billion barrels of oil.  ExxonMobil 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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• commence, ExxonMobil, Monitoring, oil, production, Prosperity

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