Maiden oil platform arrives in Guyana

Guyana received its first floating, production, storage and offloading unit (FPSO) Liza Destiny in anticipation of ExxonMobil's production launch in March 2020.

The vessel is stationed at the deepwater Stabroek block where the US major will start the first phase of development from its Liza field at a rate of 120,000 b/d.

ExxonMobil operates 6.6mn-acre Stabroek with a 45pc stake. US independent Hess holds 30pc, and the remaining 25pc belongs to Chinese state-owned CNOOC unit Nexen.

The Liza Destiny "is a significant component of the Liza phase one development, which involves four undersea drill centers with 17 wells," Hess said.

ExxonMobil's chain of successes in Guyana started in May 2015, when it discovered more than 1bn bl of oil equivalent (boe), including 32°API crude, at its Liza-1 well on Stabroek about 130mi offshore.

The company announced a 13th oil discovery at the Yellowtail-1 well in April 2019, boosting previously announced estimated recoverable resources of around 5.5bn boe on Stabroek.

The firm projects Stabroek output of 750,000 b/d by 2025. All of the crude will be exported from the tiny South American country, which will debut as a significant oil producer.

The sparsely populated country currently produces no hydrocarbons, and imports refined products from Trinidad and Tobago and the US to meet sparse demand of about 12,800 b/d.

Phase 2 of the Liza development will use a second FPSO designed to produce up to 220,000 b/d and which is expected to start production in 2022, ExxonMobil said.

A third development, Payara, will utilize an FPSO vessel designed for 180,000 b/d, beginning as early as 2023, ExxonMobil said.

Among other potential Guyana producers are UK independent Tullow Oil, which spud its second well on the offshore Orinduik block last month. Tullow's pre-drill estimate for the Joe-One well is 100mn bl, the company told Argus.

The company said on 12 August its first well on Orinduik, Jethro, also holds an estimated 100mn bl.

Other companies with production-sharing agreements (PSAs) for offshore Guyana acreage include US major Chevron, Italy's Eni and Germany's Dea.