Jagdeo says ExxonM finding more oil in the surrounding area will push the project to its 20-year lifespan

Sep 19, 2024 News

Vice President, Dr. Bharrat Jagdeo

Despite ramped up production that will drain Liza 1& 2 in 7 years…

Kaieteur News – With optimised production at the current rate oil is being pumped at Liza One and Two, the projects are estimated to be drained of oil within the next seven years which is less than the 20 year lifespan stated in the project documents.

However, Vice President Bharrat Jagdeo told reporters at his last press conference that the lifespan of the projects will be around the original 20 years outlined in the documents as ExxonMobil continues to find more oil in areas it is currently working.

Asked directly: “At the current rate of production, looking at Exxon’s optimization Liza 1 & 2 could possibly be drained within the next seven years which would shorten the previously given 20-year lifespan of the project outlines in the documents, where does that leave Guyana?”

He said that from the information relayed to him, “As they (Exxon) drill they learn more as they extract the resources. Do you think that the estimate of what’s in a well is the final figure? They keep drilling they are finding more in these areas so we believe that the life of these projects will be around the original timeframe and some may even be extended further out. That’s our position as of today and definitely they don’t believe that it’s going to be drained in seven years.”

On September 8th the Kaieteur News reported that based on information shared with the publication by the Ministry of Natural Resources the 20-year project life of the Liza One and Liza Two projects had been significantly reduced with almost half of the reserves at the fields already depleted. This newspaper had requested data on the amount of oil produced to date from the projects currently in operation. Commencing production in December of 2019 Liza One has already produced close to 200 million barrels of oil (MBO). The project’s Field Development Plan indicated that there is a reserve of 452 MBO. What has already been extracted represents 44% of the project’s reserves.

Going over to Liza Two the ministry reported that almost 200 MBO would have been produced by ExxonMobil since the project commenced production in February of 2022.That field, according to the FDP holds about 570 MBO. Consequently, 35% of the reserves have already been produced by the company. It could also be deduced that about 40% of the collective reserves at the two projects have been depleted.

Meanwhile, at the current rate of production, ExxonMobil could drain the remaining resources in just over seven years. Liza One, according to the Ministry of Natural Resources website is producing about 150,000 barrels per day while the Liza Two project is operating at a daily rate of approximately 250,000 barrels per day.

It should be noted that Minister of Natural Resources, Vickram Bharrat previously admitted that oil from the three projects currently in operation could be depleted ahead of the 20-year lifespan due to the optimization of production. The minister during a news conference assured that the ramped-up oil production is being done safely by the operator of the Stabroek Block. He was however asked by this newspaper to explain how the optimisation works could affect the 20-year estimated project life for each of the developments. To this he said, “Yes it can finish before the 20 years or it can even go beyond because as a reservoir matures, you can get more out of it and then as we have more discoveries, we can add those wells to the existing development too.”

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Exxon, Jagdeo, Liza 1, reserve, seven years

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