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ExxonMobil in discussion with Gov’t to ramp up oil production at Liza Two
(ExxonMobil in discussion with Gov’t to ramp up oil production at Liza Two, the company’s CEO, Alistair Routledge, said last Wednesday.)
The Liza Unity FPSO
Kaieteur News – ExxonMobil Guyana Limited (EMGL), the operator of Guyana’s prolific Stabroek Block is currently in discussion with the Government of Guyana (GoG) to further increase the daily rate of oil production at the Liza Two project.
This was revealed by the President of EMGL, Alistair Routledge during a media conference last week at the company’s Duke Street, Kingston, Georgetown office.
He explained that the oil giant is currently producing a combined total of about 665,000 barrels of oil per day (bpd). “For Liza Phase One that capacity it’s authorized above 160,000 (bpd) but our current capacity is 150,000 barrels per day. For the Liza Phase Two and Payara developments is 252,000 barrels per day (each) of authorized production.”
In May this year, the company signaled its intention to increase the daily rate of production at Liza Two, operated by the Liza Unity Floating Production Storage and Offloading (FPSO) vessel.
It later received the blessings of government to conduct debottlenecking activities to increase the production. This activity was completed in August. Routledge reported that the facilities were operating as expected by the company, but it is still hoping to boost production further.
According to him, “We are ongoing discussions review with various agencies including the EPA and with the Ministry of Natural Resource on whether to increase the production on the Unity FPSO above the 252,000.”
He said the process was very methodical where the company would review the facilities for bottlenecks to improve recovery of the resources. This informs the work of the technical team, as it did during the last shut-down in August for Unity.
During the process, the company would focus on increasing the capacity of heat exchangers; analyzing the trims on valves and others. He explained that prior to the physical activities on the vessels, the team would conduct analyses and risk assessments. It is followed by reporting to the EPA to inform the regulator of the new performance of the systems. Notably, the company does not proceed with ramping up production until it gets the green-light from the agency.
Routledge said Exxon currently believes the Liza Unity can be increased to 270,000 bpd.
Presently Exxon is producing oil at three projects in the Stabroek Block. Each of the developments have an estimated 20-year project life; however, the Liza One and Liza Two projects are likely to be cut short as almost half of the oil has already been drained.
Last month this newspaper reported that Liza One, which commenced oil production in December 2019, has already produced close to 200 million barrels of oil (MBO). The Field Development Plan for that project however indicates that the project, operated by the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel, has a reserve of 452 MBO. This means that 44% of the reserves are already drained.
Similarly, at the Liza Two project, the Ministry reported that almost 200 MBO have been produced by Exxon since the commencement of production activities in February 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.
(ExxonMobil in discussion with Gov’t to ramp up oil production at Liza Two)
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