Latest update May 22nd, 2026 12:38 AM
At current rate of production oil in Liza 1 & 2 could be drained before 20-year lifespan
Source: Liza Two FDP
Kaieteur News – The Liza One and Liza Two projects in the Stabroek Block are both currently operating above the design rate outlined in the Field Development Plans (FDPs), sparking concerns about the early depletion of resources from the developments.
Each project has a 20-year lifespan, but with American oil giant, ExxonMobil pushing the Floating Production Storage and Offloading (FPSO) vessels above the design rate, the oil in each field could be depleted long ahead of its time.
Kaieteur News was able to secure copies of the FDPs for the Liza One and Liza Two projects, which revealed alarming details about the developments. The FDP is a technical document that provides detailed information on the project, including the design details, equipment and chemicals to be used during the operations and production profiles to guide the extraction of resources.
According to the Liza One FDP, the project’s total reserves for developed resource are forecast to be 452 million barrels of oil (MBO) for a 20-year production period. The project, which commenced production in 2019, should have been producing 98 thousand barrels per day (kbpd) in 2024 (see table attached) but Exxon has pushed production to as much as 160 kbpd, according to information on the Ministry of Natural Resources website.
Similarly, the Liza Two project which commenced oil production in February 2022 was expected to be producing at 211 kbpd this year but over 250 kbpd is being pumped daily by the American oil super major. The Liza Two field, according to the FDP has an expected production volume of 570 MBO.
So far, it is unclear how much oil in total has been produced at each of the projects since startup.
It is however clear that with Liza One producing a whopping 60,000 barrels above the design rate and Liza Two pumping 40,000 barrels extra daily, the lifespan of the two projects could be depleted well ahead of the 20-year lifespan.
Source: Liza One FDP
The higher daily production has not only sparked safety and environmental concerns as the country remains without an unlimited parent company guarantee to clean up and compensate after an oil spill, but has raised questions regarding the country’s ability to benefit from a greater portion of its oil wealth.
Based on the 2016 oil contract Guyana signed with ExxonMobil, Hess and CNOOC, 75% of the monthly revenue is deducted by the companies to repay investments. The remaining 25% is shared with Guyana as profits. The country also receives an additional 2% as royalty every quarter.
The country’s Vice President, Bharrat Jagdeo, who manages the oil and gas sector at a previous press conference, told reporters that in another few years, after Guyana repays Exxon and partners for the investments, the country will enjoy more profits. But with more oil being produced daily to help cover those expenses, it is unclear how the country would benefit more when the resources are likely to be depleted before the 20-year period. This is particularly alarming since the government is continuously approving more projects that often carry a higher price tag compared to previously approved developments.
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