Stabroek play offers an estimated 3.2 billion BOE
Liza Phase 1 Project
The Liza phase 1 development is approximately 120 miles offshore of Guyana in water depths of 5000-6200 feet. The play being developed is the Starbroek Block, which is estimated to hold more than 3.2 billion oil-equivalent barrels within its 6.6 million acres. Drilling began in May for the first of 17 wells that will serve as the foundation for production in 2020.
Location of Stabroek Block; Source: Hess Corporation
Exxon first announced the play in 2015, where they first encountered more than 295 feet of oil bearing sandstone reservoirs.
Phase 1 is expected to generate over $7 billion in royalty and profit oil revenues for Guyana of the life of the project.
Phase 1 involves the conversion of an oil tanker into a floating, production, storage and offloading (FPSO) vessel named Liza Destiny, four undersea drill centers, and 17 production wells.
Liza Phase 1 Development Description; Source: ExxonMobil
Construction of the FPSO and subsea equipment is currently under way in more than 12 countries. Liza Destiny will have a production capacity of 120,000 barrels of oil per day with a second and possibly third FPSO vessel as part of the Liza phase 2 development to come.
Source: ExxonMobil
Partners
Esso Exploration and Production Guyana Limited, an ExxonMobil affiliate is the operator with 45% interest. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.
Contracts have all been awarded to the following companies for various services: SBM Offshore (AMS: SBMO), TechnipFMC (NYSE: FTI), Saipem (BIT: SPM), Guyana Shore Base Inc., and Noble Corp. (NYSE:NE)
Guyana
Guyana was originally settled by the Dutch West India Company in 1620 and served as sugar plantations. It then became a British colony in 1815 and then gained its independence in 1966. Since gaining its independence it has mostly been ruled by socialist-oriented governments. 1992 marked what many considered the first free and fair election since gaining independence. The current government structure is a parliamentary republic and the current president is David Granger.
Guyana, which is slightly smaller than Idaho, has a population of 770,000 and with a GDP of $6.4 billion ranks 171 out of 229 countries tracked by the CIA’s World Factbook. Guyana is the only English-speaking country in South America.
