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Development drilling commences, facility construction under way; first
oil in 2020
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Production from three developments to exceed 500,000 barrels per day
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About 50 percent of in-country workforce is Guyanese
The Liza Phase 1 development continues to rapidly progress, with the
commencement of development drilling offshore Guyana, ExxonMobil
said today.
Development drilling began in May for the first of 17 wells planned for
Phase 1, laying the foundation for production startup in 2020. The
company and its co-venturers have so far discovered estimated
recoverable resources of more than 3.2 billion oil-equivalent barrels on
the Stabroek Block.
“The work our teams have done in Guyana is remarkable,” said Liam
Mallon, president of ExxonMobil Development Company. “We are well on our
way to producing oil less than five years after our first discovery,
which is well ahead of the industry average for similar projects. The
Liza development and future projects will provide significant economic
benefits to Guyana.”
Liza Phase 1 is expected to generate over $7 billion in royalty and
profit oil revenues for Guyana over the life of the project. Additional
benefits will accrue from other development projects now being planned.
Liza Phase 1 involves the conversion of an oil tanker into a floating,
production, storage and offloading (FPSO) vessel named Liza Destiny, along
with four undersea drill centers with 17 production wells. Construction
of the FPSO and subsea equipment is under way in more than a dozen
countries.
Liza Destiny will have a production capacity of 120,000 barrels
of oil per day. A second FPSO with a capacity of 220,000 barrels per day
is being planned as part of the Liza Phase 2 development, and a third is
under consideration for the Payara development. Together, these three
developments will produce more than 500,000 barrels of oil per day.
“Guyanese businesses, contractors and employees have been an essential
element of our exploration, drilling and development progress,” Mallon
said. “Our focus is on enabling local workforce and supplier
development, and collaborating with the government to support the growth
and success of Guyana’s new energy industry.”
About 50 percent of ExxonMobil’s employees, contractors and
subcontractors are Guyanese, a number that will continue to grow as
operations progress. ExxonMobil spent about $24 million with more than
300 local suppliers in 2017, and opened the Centre for Local Business
Development in Georgetown, Guyana, to promote the establishment and
growth of small- and medium-sized local businesses. The centre has
enabled access to training and capacity-building support for more than
275 local businesses.
The Stabroek Block is 6.6 million acres (26,800 square kilometers). Esso
Exploration and Production Guyana Limited is operator and holds 45
percent interest. Hess Guyana Exploration Ltd. holds 30 percent interest
and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.
About ExxonMobil
ExxonMobil, the largest publicly traded international energy company,
uses technology and innovation to help meet the world’s growing energy
needs. ExxonMobil holds an industry-leading inventory of resources, is
one of the largest refiners and marketers of petroleum products, and its
chemical company is one of the largest in the world. For more
information, visit www.exxonmobil.com
or follow us on Twitter www.twitter.com/exxonmobil.
Cautionary Statement: Statements of future
events or conditions in this release are forward-looking statements.
Actual future results, including project plans and schedules and
resource recoveries could differ materially due to changes in market
conditions affecting the oil and gas industry or long-term oil and gas
price levels; political or regulatory developments; reservoir
performance; the outcome of future exploration and development efforts;
technical or operating factors; the outcome of future commercial
negotiations; and other factors cited under the caption “Factors
Affecting Future Results” on the Investors page of our website at
exxonmobil.com. References to “recoverable resources” include quantities
that are not yet classified as proved reserves under SEC rules but that
we believe will be produced in the future and moved into the proved
reserve category.
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