ExxonMobil on June 16, 2017, made a final investment decision (FID) to proceed with the 1st phase of development for the Liza field, one of the largest oil discoveries of the past decade, located offshore Guyana.
ExxonMobil also on Friday announced positive results from the Liza-4 well, which encountered more than 60 meters of high-quality, oil-bearing sandstone reservoirs, which will underpin a potential Liza Phase 2 development.
According to the company, gross recoverable resources for the Stabroek block are now estimated at 2 billion to 2.5 billion oil-equivalent barrels, which includes Liza and other successful exploration wells on Liza Deep, Payara and Snoek.
The Liza Phase 1 development includes a subsea production system and a floating production, storage and offloading (FPSO) vessel designed to produce up to 120,000 barrels of oil per day.
Exxon awarded a contract for the supply of an FPSO unit for the giant Liza discovery to SBM Offshore last December.
Earlier this year, TechnipFMC won a contract for the engineering, manufacture, and delivery of subsea equipment and Saipem was awarded an EPCI contract for the SURF package for Liza development.
Production is expected to begin by 2020, less than 5 years after discovery of the field, Exxon said on Friday.
Phase 1 is expected to cost just over $4.4 billion, which includes a lease capitalization cost of approximately $1.2 billion for the FPSO unit, and will develop approximately 450 million barrels of oil.
American energy company Hess Corporation also said on June 16, 2017, that it had sanctioned the 1st phase of development of the Liza field.
