ExxonMobil to put in five FPSOs in 5 years – IMF says such production ramp-up “unprecedented”

The Liza Destiny

has said on several occasions that by 2025, Guyana is expected to produce up to 750,000 barrels of oil per day. But it would not achieve this by solely relying on the three Floating Production Storage and Offloading (FPSO) vessels for the Liza Phase One Project, Liza Phase Two and the Payara Project (which is still awaiting government’s approval).

The International Monetary Fund (IMF) has found that ExxonMobil would be introducing two more FPSOs into the Stabroek Block, bringing the total to five. The first FPSO, Liza Destiny, is expected to be in operation this month. The second FPSO, Liza Unity, is projected for hook up by 2022. The FPSO for Payara has a 2023 deadline.           

The IMF noted that a fourth FPSO would be in Guyana’s waters in 2024 with the fifth vessel hooked up in 2025.

In a special report prepared for Guyana’s authorities, the IMF said that bringing on stream, five oil production projects in five years is “unprecedented.” It said that if this were to be realised, Guyana would reach one of the highest ratios of oil daily production per capita in the world. The Fund did caution, however, that ExxonMobil’s production estimates could very well turn out to be “too optimistic.”

As the government continues efforts to recruit a Third Party Reviewer for the Payara Field Development Plans, ExxonMobil and its partners, Hess Corporation and CNOOC/NEXEN, are steaming ahead with plans to extract Guyana’s oil as quickly as possible from the Stabroek Block.

The Liza Unity

Oil production was initially projected to occur between January and March of 2020, but due to ExxonMobil’s impressive progress on all the necessary installations, that target has been brought forward to this month. While these plans are moving ahead for oil production from the Liza Phase One Project, ExxonMobil is ramping up its development plans for Liza Phase Two.

During its third quarter earnings, Hess Corporation had disclosed that development drilling of Liza Phase Two will commence in the first quarter of 2020 with first oil expected by mid-2022. Pending government approval, ExxonMobil is also eager to start oil production from the Payara field which is expected to utilise a Floating Production Storage and Offloading vessel with a gross production capacity of 220,000 barrels of oil per day.

As it awaits a green light from government, ExxonMobil has been grating several contracts related to the construction of the FPSO to ensure it meets the 2023 deadline. And as it pushes ahead with those plans, ExxonMobil is also conducting drilling and appraisals of other wells to determine their productivity, all in an effort to maximise profits for its shareholders as quickly as possible.

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Comments

  • kamtanblog  On December 20, 2019 at 2:23 am

    Nice one

    “enhanced profits for shareholders”

    Really !

    The greed of the wealth accumulators
    is insatiable….what happens if

    1. Accidental spill
    2. Oil price crashes
    3. Oil dun

    More questions than answers

    UK’s North Sea (Scottish oil) is but a trickle
    today ….4.5m Scots want independence from
    UK. Politricks.!!

    Guyanese be aware and beware
    When the oil dun it dun !

    Kamtan 🇬🇧🇬🇾🇪🇸🇬🇧👽

  • brandli62  On December 20, 2019 at 4:18 am

    Kamtan, so what’s the alternative that you are proposing? Just leave the oil in the ground and live the life of the last 50 years plus since independence. It’s easy to pontificate from your retirement estate in Spain. I live in Switzerland and hope the best for the Guyanese people in developing with the oil wealth used in a sensible manner. There are smart people of reason in Guyana and we should pin our hopes and support to those. For example, a business person recently came up with a proposal to build an incinerator to take care of the garbage problem in Guyana. This is an excellent idea as it will curb land fills, reduce plastic ending up in rivers, and produce energy from waste. These type of initiatives we need to support rather than making cryptic, cynical comments.

    • kamtanblog  On December 20, 2019 at 7:09 am

      It’s neither “cryptic or cynical”
      You absolutely missed the point.

      Regulated production by Guyana government/
      regulators.
      Control over the capitalist greed !

      1. Make sure oil nah dun
      2. Healthy and safety regulation
      3. Most of exon et al profits go
      to guyanese people.

      Why do you live in Switzerland ?
      Hitler and his Nazi banks and biggest
      guns and drugs money launderers.

      R u one ?

      Just wondering

      Kamtan 🇬🇧🇬🇾🇪🇸👽

      • brandli62  On December 20, 2019 at 7:32 am

        Your comments are not constructive. I live in Switzerland because my Guyanese mother married a Swiss banker. No need to slam the Swiss about the war. They protected their Jewish population and provided shelter of ten thousands of refugees during the war. Mistakes were done, but no country is perfect.

      • kamtanblog  On December 20, 2019 at 7:49 am

        Sorry my friend but history can be forgiven
        but not forgotten….
        Why did Hitler not invade Switzerland ?

        The last place on my must visit list !
        Sorry my choice.

        Kamtan

      • brandli62  On December 20, 2019 at 8:16 am

        Hitler would have invaded Switzerland sooner or later. He got greedy with Russia, which brought his brutal regime down. If he had succeeded in defeating the Russians, we would have forced the Swiss to surrender.

      • kamtanblog  On December 20, 2019 at 8:51 am

        No sir….
        Doubt it ! Don’t bite the hand that feeds
        you…Hitler betrayed Stalin by invading
        Russia and ended up fighting war on two
        fronts…did not listen to his generals.
        After UK it was USA …that would have
        been another mistake.
        People are people no matter where they
        from…look how Germany and Japan have
        recovered post WW2.
        Political wars are futile.
        Economic wars are similar

        War on poverty way forward.

        Kamtan

  • Clyde Duncan  On December 20, 2019 at 6:09 am

  • Clyde Duncan  On December 20, 2019 at 6:14 am

    • Trevor  On December 20, 2019 at 6:19 am

      What does this have to do with Exxon drinking up the oil before the mulah comes? Or are you indicating that oil drilling will cause pollution, as if that is something new?

    • kamtanblog  On December 20, 2019 at 1:50 pm

      Clyde
      War on waste is another one worth fighting…

      Simple Simon says
      You mess it up you clean it up !
      Excuses excuses !

      Point my finger at corporate packaging.
      Once witnessed a protest in my local
      supermarket.
      Customer held up queue removing all packaging at till …we cheered her on !

      Amusing

      Kamtan

  • Clyde Duncan  On December 20, 2019 at 6:52 am

    Trevor: You should expect a rapid increase in population – Like never seen before.

    The example of people living near textile factories that feed and clothe them and at the same time poisoning them is instructive.

    One hand giveth and the other hand taketh away – That Catch-22 concept!

    Unless, the vehicular traffic management and waste management intensifies ….

    LOOK: It is a small leap from where you are to where these people are ….

    These videos may be the only warning you get!!

    • kamtanblog  On December 20, 2019 at 7:38 am

      Yep…Guyana’s population will explode
      over next decade or two.
      With oil wealth attracting economic
      migrants…mostly ex oil Venezuela operatives.

      If my memory serves me
      Sadam was accused to drilling sideways
      (Possible today) extracting Kuwait’s oil.

      Won’t surprise me if mad-uro accuses exon
      of “poaching” it’s oil.
      The greed of both capitalists/communists
      is no different.
      Raw greed a human curse !

    • Trevor  On December 20, 2019 at 8:14 pm

      There is probably like 100,000 newcomers from Venezuela & Brazil living in Guyana right now, but they are slowly making their way to GT, and that is when the problems start.

      I’m not anti-migrant, but the GoG should accommodate them but not at the expense of the locals who are getting angry at the newcomers for coming to GT. GT is already congested as it is with the oil company tycoons driving their 2015-2020 model vehicles on the roadways.

  • Rosaliene Bacchus  On December 20, 2019 at 12:46 pm

    “ExxonMobil is also conducting drilling and appraisals of other wells to determine their productivity, all in an effort to maximise profits for its shareholders AS QUICKLY AS POSSIBLE.” (Emphasis mine)

    ~ ExxonMobil knows that time is running out for fossil fuel companies to continue amassing great wealth. The time is fast approaching when the reality of our climate emergency will flood, burn, and overheat their decades-long climate denial disinformation.

    • kamtanblog  On December 20, 2019 at 12:57 pm

      Rosie
      Caesar was playing his harp and singing
      while Rome burned.
      Exon don’t give two shite is the earth is torched….raw capitalistic greed !

      Hope it never happens but it sure looks
      that way. Hope not !

      Rather live in hope than die in despair.

      Kamtan

  • wally n  On December 20, 2019 at 3:21 pm

    ONLY GUYANESE could take a discussion of Oil Drilling in Guyana through,Switzerland over Hitler, under Spanish mansions……HI GUYANESE while you keep talking, Trinidadians gonna steal yer shorts.

    • kamtanblog  On December 20, 2019 at 5:24 pm

      Yep..how many triniland and mad-Duro
      economic migrants now in GT working
      in oil industry ? Guyana is being colonised
      all over again …this time by their neighbours.

      In less than a decade economic migrants
      will be majority.

      Sad fact !

  • wally n  On December 20, 2019 at 6:04 pm

    Solution Alert…….FROM THIS MOMENT…”Economic Migrants” WILL BE CALLED TEMPORARY WORKERS except! Trinidadians, they must have an expiry date stamped on forehead.
    You have been WARNED!

  • brandli62  On December 20, 2019 at 6:12 pm

    We should refrain from any anti-immigrant speech in this blog. I would just remember that Guyanese have been immigrants to far flung countries for the last 50 plus years. Guyana should welcome skilled workers, such as Trinidadians with experience in the oil sector, to come help and train local people. After all, they are closest to Guyanese sharing a common Caribbean cultur,sports, and British colonial history. Let’s be positiv and see the opportunity and not the negative aspects.

    • Trevor  On December 20, 2019 at 8:19 pm

      You’re preaching to the choir. Some Guyanese are two-faced. They would falsely claim refugee status in America or Canada, while preaching hate towards Haitians.

      I was castigated because I talked with some of the Pablos in GT, because “the Guyanese I met are angry at the “influx” and “fallout” of the Venezuelans and Haitians”.

      And when I state the truth that there are Guyanese who smuggle themselves in shipping containers and even ice freezers to live in America and Canada, they get vex and complain to the webhost.

      If Guyanese here are anti-immigrant, then why aren’t they also acting like this towards the oil companies, because the oil companies are foreign entities?

      Methinks that a type of Guyanese want the oil money for themselves, and live like Arabians of the sea. I already said here that the middle-aged rum-drinking cane cutter is already practicing how to become an Arabian prince. Greed is a bad thing.

  • wally n  On December 20, 2019 at 7:57 pm

    “After all, they are closest to Guyanese sharing a common Caribbean cultur,sports”
    WOW! I am not saying don’t hire them, just treat them as guest workers.
    If they were so wonderful, they would not be so close to sh….hole status.
    Trinidadians hatred and envy goes back many decades, I was actually around when they wielded Oil like a sledge hammer on Guyana and the Caribbean.
    Oil Industry is rife with crooks and predators, Trinidad is ours.
    Guyana is the new guy, they will be coming hard from all directions, hoping not too many Guyanese officials share your opinions.
    Time will tell.

    • Trevor  On December 20, 2019 at 8:22 pm

      Who are these Guyanese who are not fond of Trini investment?

      You know who are those “officials”?

      A certain racial group in Guyana who desires Trinidad, Guyana and Suriname to become a Eurocentric Modi ethno-state where Blacks, Amerindians and Hispanic people do not exist. They might exterminate the Muslims next after they are done getting rid of us.

      They absolutely hate the Haitians and Nigerians who are VISITING here, much less immigrating. The hatred that they have is tantamount to genocide if they had the chance.

  • Trevor  On December 20, 2019 at 8:29 pm

    The people who are spreading hate in Guyana do not even live in GT, but instead live in rural areas like Region 2, 3 and 5, and are low class people. They don’t have CXC. They think that Haitians are flooding the shores, while telling the Chinese man that he is selling his shack on government-owned land for millions of AMERICAN dollars. No lie brethren!

    The dunce and racist barefoot man only want Jagdeo to collect the oil money, and distribute it to his supporters to emulate Dubai; a racist country built on the blood of slave labour.

    The anti-immigrant and barefoot dunce people who voting for Jagdeo’s stooge are racist waste man dem. They don’t know bleep of oil, yet want to fleece Chinese man to buy his makeshift shack along West Bank Demerara or Mahaicony.

  • Clyde Duncan  On December 21, 2019 at 11:41 am

    Eddie in the UK wrote:

    When the obsession with material greed and profit, outstrip the reasoning of men, you can be sure that chaos will be the only winner.

    • Trevor  On December 21, 2019 at 3:23 pm

      My family work as “bureaucrats” in GT and the most they want is pay raise. It’s someone else who aspires to become Arabians of the Caribbean, not me! They would likely genocide me because I am of a different creed. They live in Pradoville.

  • Clyde Duncan  On December 22, 2019 at 6:57 pm

    HERE IS AN EXAMPLE TO FOLLOW:

    Barbados Residents to be Fined for Refusing to Keep Premises Clean

    BARBADOS TODAY: Residents who refuse to keep their premises clean will be fined starting April next year.

    Word of this has come from Prime Minister Mia Mottley, who said her administration would be enforcing the law.

    Mottley said Attorney General Dale Marshall has already done the initial work in relation to necessary changes to the legislation, which she said Cabinet would review and approve “shortly”.

    “In addition to that, you can’t just legislate without letting people know there is a new marshal in town. You’ve got to properly publicly educate people about what you expect of them,” said Mottley.

    As such, she said there would be 3.5 months of sensitization and letters of warning as the legislation was being put in place, before Government introduce “a series of civil penalties so that people will be ticketed” for not cleaning their properties.

    Mottley could not immediately say what the penalty would be, but indicated that it would cost “just a little bit more than it would cost for you to pay a man to come and clean by you”.

    “We want Barbadians to understand that the Government have given you a ‘bly’ for the next three and a half months. You have now enough time to take up responsibility,” Mottley warned.

    She said the penalty was necessary because this country will end up in economic problems again if there is a public health crisis in the middle of a tourism season or if we have a “public health crisis” among the population that affects productivity.

    She also noted that environmental health and environmental protection agencies would be “going after” those with derelict vehicles. Initially, derelict buildings on Highway One and Highway Seven and the “town centres” will be targeted.

    “When we finish there, we start coming into the other subsidiary highways and the other subsidiary roads,” said Mottley, as she spoke to journalists on Monday after a tour of the Pot House district in St John where the road is badly eroded.

    She said email addresses would be set up so residents could provide information to the environmental and health agencies about overgrown lots.

    Mottley also pointed out that the 13 depots of the Ministry of Transport and Works had until January 10 next year to provide an inventory of all the culverts and drains in Barbados.

    Stating that the country would be embarking on a beautification programme, Mottley said as part of the national drive, the Barbados Water Authority would be putting all their pipes underground.

    • kamtanblog  On December 22, 2019 at 7:24 pm

      Is Barbados to become a “nanny state”
      …why Not incentivise those who already
      do so by reducing or wavering their local
      taxes. Banning or imposing fines is certainly
      not way forward. It is a negative approach
      in resolving such issues. Reward rather than redicule/restrain.

  • Clyde Duncan  On December 22, 2019 at 11:53 pm

    Kamptan: What you are proposing is rewarding bad behaviour !!

    Meanwhile, the neighbourhood is still a mess – and the revenue is reduced.

    Where I live – you are fined and if necessary the Municipality will clean-up the mess for you and send you an invoice for the clean-up and a fine.

    Punishment is the only way forward.

    These people been doing what they doin’ for donkey years – You can’t treat them with kid gloves.

    • kamtanblog  On December 23, 2019 at 12:30 am

      Agree…for starters “fines” as punishment
      However later it becomes impossible to enforce …short term solution for long term results….
      What happens if/when fines are not paid.
      You send in “Gestapo”…
      Sometimes politicians go OTT with their
      power. The big stick method can be
      counter productive.

      Would love to know if it achieves its objective
      of keeping Barbados clean and today.
      Old habits die hard

      In my opinion

  • Clyde Duncan  On December 23, 2019 at 1:00 am

    Kamptan wrote:

    “However later it becomes impossible to enforce ….”

    “What happens if/when fines are not paid.”

    I guess that is why leaders were invented.

    I suppose it would be easier to convince you if you were keeping your property tidy – and your neighbour was keeping his property looking like a pig sty ….

    And your neighbour’s conduct is bringing your property values DOWN??

    • kamtanblog  On December 23, 2019 at 1:15 am

      Now that makes sense

      Commercialisation of the Hood !

      Think Bel Air GT Guyana !
      Compare to alboystown ?

      Rich v poor

      Rob poor to give to rich
      Or
      Visa versa !

      Fine the poor so that the rich pay less taxes.

      Yep?

      Makes sense

      Kamtan 🇬🇧🇬🇾🇪🇸🇬🇧👽

  • wally n  On December 23, 2019 at 11:34 am

    See how easy it is for all of you to be “misdirected” actually think that the main and biggest problem in Barbados is ………..Keeping the yard clean?

    • kamtanblog  On December 23, 2019 at 1:31 pm

      Barbados is bancrupt !
      Who owns Barbados ?

      Check out its currency exchange rates.
      When I left BG in 1962 £=G$4.80
      What is exchange rate today…£=G$360.00
      What is exchange rate of Barbados $

      Follow the rainbow and you will find your
      Pot of gold …will black gold (oil) make Guyana
      rich again ?

      Go figure

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