The US-based oil giant, Exxon Mobil Corporation says it has made a final investment decision to proceed with the first phase of development for the Liza field, one of the largest oil discoveries of the past decade, located offshore Guyana.
The announcement follows Thursday’s regulatory approval from the David Granger government.
The company said that the Liza Phase 1 development includes a subsea production system and a floating production, storage and offloading or FPSO vessel designed to produce up to 120,000 barrels of oil daily.
ExxonMobil said that production is expected to begin by 2020, less than five years after discovery of the field.
The Liza field is part of the Stabroek Block, which measures 6.6 million acres, or 26,800 square kilometers. Esso Exploration and Production Guyana Limited is operator and holds a 45 percent interest in the block. Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 per cent.
On Thursday, the Minister of Natural Resources in Guyana Raphael Trotman, said that the Petroleum Commission Bill, which makes provision for the establishment of a Petroleum Commission to serve as a regulatory agency for Guyana’s oil and gas industry, will go before a Special Select Committee of Parliament to “the benefit of a bipartisan look” before it become law.
Meanwhile, Esso Exploration and Production Guyana Limited is continuing exploration activities and operates three blocks offshore Guyana – Stabroek, Canje and Kaieteur. Drilling of the Payara-2 well on the Stabroek block is expected to commence in late June.
Exxon Mobil also announced positive results from the Liza-4 well, which encountered more than 197 feet of high-quality, oil-bearing sandstone reservoirs that will underpin a potential Liza Phase 2 development.
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