Guyana Oil: ExxonMobil Liza Project in Guyana – video

Guyana project overview – This Update was filmed on April 4, 2019

ExxonMobil initiated oil and gas exploration activities in Guyana in 2008, collecting and evaluating substantial 3-D seismic data that led to the company safely drilling its first exploration well in 2015, Liza-1.

The Liza prospect is located approximately 120 miles (193km) offshore Guyana in the Stabroek block, which is operated by ExxonMobil affiliate Esso Exploration and Production Guyana. Esso Exploration owns 45% interest in the block, while Hess Guyana Exploration owns 30% and CNOOC Nexen Petroleum Guyana owns the remaining 25%.     

Development of the Liza prospect will be done in phases. Esso Exploration submitted a plan for phase one of the field’s development to Environmental Protection Agency (EPA) Guyana in August 2016. The EPA issued an environmental permit and the Ministry of Natural Resources issued a production license for the Liza field in June 2017.

The final investment decision for phase one was made during the same period. Phase one of the project is set to cost an estimated $4.4bn and will recover approximately 120,000 barrels of oil. First oil production from phase one is expected in 2020 and production for phase two is due in 2022. Liza prospect location The Liza prospect lies in the Stabroek block, which is spread over an area of 26,800km² (6.6 million acres) offshore Guyana.

The Guyana Basin is a relatively unexplored area and very few drilling activities have been carried out to date. “Esso Exploration has submitted a plan for phase one of the field’s development to Environmental Protection Agency (EPA) Guyana in August 2016.” Previous exploration activities in the basin were carried out by other companies outside the southern boundaries of the Stabroek block in the 1970s. A total of 22 wells were drilled in the area, which all proved non-commercial.

Despite the earlier unsuccessful drilling activities, initial seismic data and geologic analysis indicated the presence of oil and gas plays in the block. Based on this data, Esso Exploration commenced drilling activities in the Stabroek block, thereby becoming the first company to drill in the area since the 1970s.

Geology and reserves The Stabroek block contains sediments of Amazonian origin, which were deposited by the Guiana Current. Seismic data collected in the region has indicated the presence of multiple play types, including Cretaceous and amplitude-supported plays containing stratigraphic on-laps, turbidites and basin floor fans.

The Liza prospect is estimated to contain recoverable reserves of four billion barrels of oil equivalent. Liza prospect appraisal and well details Oil in the Stabroek block was discovered with the drilling of the Liza-1 well in May 2015, which encountered more than 295ft (90m) of oil-bearing sandstone reservoirs. The well was drilled by the Deepwater Champion 120 drillship. Esso Exploration drilled a second well known as Liza-2 in June 2016 approximately two miles (3.3km) away from the Liza-1 well in order to appraise the field.

The well was drilled to a depth of 17,963ft (5,475m) by the Stena Carron drillship and encountered 190ft of oil-bearing sandstone reservoirs. ExxonMobil performed an extensive 3D seismic survey covering an area of 6,500 square miles following the drilling of Liza-2. Two seismic vessels were used to collect the data.

Based on the seismic survey, a third appraisal well named Liza-3 was successfully completed in September 2016. The well confirmed the commercial viability of the Liza prospect. A fourth appraisal well, Liza-4, was drilled in March 2017. It encountered more than 197ft (60m) worth of high-quality oil column. In 2018, a fifth appraisal well, Liza-5, was drilled by the Stena Caron drillship. The well was tested and proved reserves in the northern part of the Liza field.

The discovery at Ranger is expected to support the third phase of the field development. Phase one field development of the Liza prospect Esso Exploration is currently developing the pre front-end engineering and design (pre-FEED) aspects of the field. Contractors involved Seismic data specialist Spectrum supplied 2D seismic data for the evaluation of the Liza prospect. SBM Offshore was awarded the construction, installation and operation contract for the Liza Destiny FPSO vessel.

The company was previously contracted to provide front-end engineering and design (FEED) services for the FPSO. TechnipFMC was awarded the engineering, manufacture and delivery contract for subsea production system equipment for phase one, while Saipem is providing the engineering, procurement, construction and installation services for the subsea umbilicals, risers and flowlines.

Guyana Shore Base is providing shore base services, while a drilling services contract has been awarded to Noble Corporation. The company will be providing its Noble Bob Douglas drillship under a three-year contract commencing from the first half of 2018.

See more at www.subsea.systems

ALSO VIEW EARLIER VIDEO – published on Guyanese Online

Oil Production – Offshore Guyana – Animated Overview video

Oil Production – Offshore Guyana – Animated Overview Hess Corporation –  Published on Jun 23, 2017 Watch the animated overview of the origins and the future production plans of the Guyana basin.

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