ExxonMobil approves US$9 billion investment in Payara after Guyana govt gives greenlight

Last Updated on Wednesday, 30 September 2020, 19:33 by Denis Chabrol

IRVING, Texas – ExxonMobil has made its final investment decision to proceed with the Payara field  offshore development in Guyana after receiving government approvals. Payara is the third project in  the Stabroek Block and is expected to produce up to 220,000 barrels of oil per day after startup in  2024, using the Prosperity floating production, storage and offloading (FPSO) vessel.

The $9 billion development will target an estimated resource base of about 600 million oil-equivalent  barrels. Ten drill centers are planned along with up to 41 wells, including 20 production and 21  injection wells.

“ExxonMobil is committed to building on the capabilities from our Liza Phase 1 and 2 offshore oil  developments as we sanction the Payara field and responsibly develop Guyana’s natural resources,”  said Liam Mallon, president of ExxonMobil Upstream Oil & Gas Company. “We continue to prioritize  high-potential prospects in close proximity to discoveries and maximize value for our partners, which  includes the people of Guyana.”

ExxonMobil’s first offshore Guyana project, Liza Phase 1, began producing in late 2019, well ahead of  the industry average for development time. Liza Phase 2, remains on track to begin producing oil by  early 2022. It will produce up to 220,000 barrels of oil per day at peak rates using the Liza Unity  FPSO, which is under construction in Singapore.

ExxonMobil is evaluating additional development opportunities in the Stabroek Block, including  Redtail, Yellowtail, Mako and Uaru resources, and plans to have five drillships operating offshore  Guyana by the end of this year.

As new projects proceed, investment in the Guyana economy increases. More than 2,000 Guyanese  are now supporting project activities on and offshore, a 50 percent increase since 2019. ExxonMobil  and its prime contractors have spent over $300 million with more than 700 local companies since  2015. More than 2,500 Guyanese companies are registered with the Centre for Local Business  Development, which was founded by ExxonMobil and its co-venturers in 2017 to build local business capacity to support global competitiveness.

The Stabroek Block is 6.6 million acres (26,800 square kilometers) with current discovered  recoverable resources estimated at more than 8 billion oil-equivalent barrels. The 18 discoveries on  the block to date have established the potential for at least five FPSO vessels producing more than  750,000 barrels of oil per day by 2026.

ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45  percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and  CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 percent  interest.