Latest update March 20th, 2025 3:23 AM
Latest News
- ExxonMobil commences “busiest year yet”
- With eyes on Guyana, Chevron buys 5% of Hess shares
- Another ExxonM study warns of impact to fish from degraded water quality
- Over 400 hundred dead, thousands beneath the rubble in one night
- Guyanese man drowns after jumping into Takatu River to escape bee attack
ExxonMobil surpasses major production milestones for Liza 1 & 2 – Data show
The Liza Destiny FPSO
Kaieteur News – Recent updates from the Ministry of Natural Resources reveal that ExxonMobil’s offshore oil projects are producing significantly more oil than their stated capacities. This observation in the Liza 1 and Liza 2 projects indicates that ExxonMobil may very well continue this trend moving forward.
The Liza 1 project, utilizing the Liza Destiny floating production, storage and offloading (FPSO) vessel, was initially designed for production of 120,000 barrels per day (bpd), later optimized to 150,000 bpd. However, data from December indicates that the project consistently exceeded this limit, with a peak reaching as high as 163,000 barrels on December 17. This is 13,000 bpd more than its current capacity, and 43,000 bpd higher than the capacity the project was built to deliver.
Similarly, the Liza-2 project, which started in February 2022 with a capacity of 220,000 bpd, was also optimized to produce 250,000 barrels daily, as reported by Hess officials. Yet, in December 2023, it exceeded this number on many days, and peaked at more than 256,000 bpd on December 14. This is 6,000 bpd higher than its stated capacity, and 36,000 bpd higher than its original capacity.
The Payara project, which began production in November 2023, has quickly increased its production. With ExxonMobil estimating five months for the project to reach its capacity of 220,000 bpd, Payara reached 100,000 bpd in November, then exceeded 180,000 bpd by the end of December, showing the potential to reach its capacity much sooner than expected. In fact, Natural Resources Minister, Vickram Bharrat said at an event yesterday that this project is expected to reach full capacity by February, thereby taking Guyana’s output to 600,000 barrels of oil per day.
The Liza Unity FPSO
Importantly, these developments suggest that ExxonMobil might continue this trend of pursuing production beyond initial capacities through de-bottlenecking. The combined production capability of Liza 1 and Liza 2, initially estimated at 400,000 bpd, effectively stands at approximately 420,000 barrels per day, based on observed production figures.
As the oil company continues this status quo, concerns have been raised about whether ExxonMobil’s strategy of rapid project development and ramp-up might compromise safety standards. In response, ExxonMobil has always iterated that safety remains a critical aspect of its operations. Delivering on this assurance will be crucial as the company prepares to bring additional projects online in the Stabroek Block, where it holds a 45% stake. Hess (owned by Chevron) and CNOOC hold 30% and 25% stakes, respectively, in these projects.
The Prosperity FPSO
The upcoming Yellowtail project is slated to begin in 2025, followed by the Uaru project in 2026. The Whiptail project is also awaiting government approval. Each of these projects has a projected capacity of 250,000 bpd, which, when achieved, will collectively add 750,000 bpd to Guyana’s oil production rate. This expansion would significantly elevate Guyana’s position in the global oil market, taking its capacity to produce oil for export, well above 1.2 million bpd. The company’s ability to maintain safety standards amid such aggressive expansion remains a point of keen focus for industry stakeholders.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
America does not fight for free
Peeping Tom… Kaieteur News- Guyana must be wary of America. That much is clear. The United States has recently issued... more
If Guyana’s President Ali is the “Zelensky of the Caribbean”, who is the Putin?
Antigua and Barbuda’s Ambassador to the US and the OAS, Ronald Sanders By Sir Ronald Sanders Kaieteur News- In the latest... more
Weekend Cartoon
