<article><p class="lead">ExxonMobil reached targeted crude production of 120,000 b/d at the Liza 1 well on Guyana's deepwater Stabroek block, a milestone that had been delayed by an earlier re-injection glitch and equipment delays.</p><p>The target was achieved a year after start-up of the Liza Destiny floating production, storage and offloading (FPSO) vessel, with the company targeting full production of 32.1°API Liza crude in first quarter 2020.</p><p>"We are disappointed by the number of equipment issues experienced and that, because of these issues and Covid-19, commissioning of the gas injection system took longer than originally projected," ExxonMobil Guyana president Alistair Routledge said. </p><p>In welcoming the output milestone, Guyana's natural resources minister Vickram Bharrat did not refer to delays in the lifting of the country's crude entitlement caused by the production delays. A fourth 1mn bl cargo had been scheduled to be lifted in mid-December. The natural resources ministry did not respond to a request for comment on a new lifting schedule.</p><p>In subsequent stages, ExxonMobil plans to <a href="https://direct.argusmedia.com/newsandanalysis/article/2160870?keywords=guyana">expand Guyana offshore flows</a> to 750,000 b/d in 2026.</p><h3>Border signal</h3><p>Guyana's oil production is rising against the backdrop of a new legal development in the country's 120-year-old territorial dispute with neighboring Venezuela.</p><p>In an 18 December ruling, the International Court of Justice (ICJ) said it has jurisdiction to hear Guyana's case seeking validation of its boundary with Venezuela. </p><p>The festering dispute is a legacy of British colonialism in Guyana. Caracas has long claimed sovereignty over the Essequibo region that makes up the western two thirds of Guyana, including oil-prone maritime territory.</p><p>Venezuela's navy in 2013 seized a research vessel working in the Roraima block under contract from US independent Anadarko. The vessel and the crew were released after a week. </p><p>In December 2018, ExxonMobil suspended seismic surveys on a part of Stabroek after a research vessel it contracted was approached by a Venezuelan navy ship. ExxonMobil said the incident would not interrupt its long-term drilling and development operations.</p><p>The Hague-based ICJ's announcement comes a month after the head of Guyana's army said no foreign forces will again be allowed to "target" the country's oil exploration and production operations.</p><p>"The court's decision means international law can be brought to bear to ensure that Guyana's patrimony is preserved," President Irfaan Ali said.</p><p>The ruling was rejected by Venezuela's foreign minister Jorge Arreaza who said the ICJ had no jurisdiction in a matter that should be discussed bilaterally with Guyana.</p><p>No schedule has been fixed by the court for the hearing of the substantive case.</p><p class="bylines">By Canute James</p></article>
