First oil flows from Liza Phase 2 development at offshore Guyana's Stabroek Block

Partners at the prolific ExxonMobil-operated Stabroek Block offshore Guyana have begun production from their Liza Phase 2 development, using a second FPSO vessel called Liza Unity, ExxonMobil and Hess Corp. said separately Feb. 11.

No information was immediately available on the initial volume of barrels produced.

The Liza Unity, moored in water depths of around 1,650 meters, is expected to reach its maximum capacity of 220,000 gross b/d of oil later this year, Hess and ExxonMobil said. It will be able to store about 2 million barrels of crude oil.

The new development brings total production capacity to more than 340,000 b/d gross in only seven years since the country's first discovery, ExxonMobil said in its statement.

"We are collaborating closely with the government and people of Guyana to develop this world-class resource responsibly, helping to meet the world's energy needs and delivering enhanced value for all stakeholders at a record pace and well ahead of the industry average," Liam Mallon, president, ExxonMobil Upstream Oil and Gas, said.

The major has a 45% stake in the Stabroek block.

"We look forward to continuing to work with the government and the people of Guyana to realize the remarkable potential of the Stabroek Block for the benefit for all stakeholders," CEO John Hess said. "The world will need these low cost oil resources to meet future energy demand and help ensure an affordable, just and secure energy transition." Hess is a 30% partner in the block.

Oil averages 33.5 API gravity

The oil that is expected to be produced averages 33.5 API gravity and 0.42% sulfur, according to an ExxonMobil pre-production assay for "Unity Gold" crude. That makes it lighter and sweeter than many other more carbon-intensive crude oil blends being produced in Latin America, and slightly lighter and sweeter than original Liza, which has an API of 32 degrees and sulfur content of 0.58%.

The first FPSO, the Liza Destiny, began producing in December 2019 and reached maximum capacity of 120,000 b/d in December 2020. Its production capacity is expected to increase to more than 140,000 b/d gross this year following production optimization work, Hess said.

A third development at Stabroek is under construction to produce the Payara field, utilizing the Prosperity FPSO. It is on track for first oil in 2024 with production capacity of around 220,000 b/d gross.

A field development plan for a fourth Stabroek development at the Yellowtail field has been submitted to the Guyana government for review, along with application for environmental authorization. That FPSO should have a production capacity of about 250,000 b/d gross, with 2025 startup.

At least six FPSOs with production capacity of more than 1 million gross barrels of oil per day are anticipated online at Stabroek by 2027, with the potential for up to 10 FPSOs to develop the gross discovered recoverable resources currently estimated at more than 10 billion barrels of oil equivalent.

The partners, which also include China's CNOOC with a 25% stake, made two discoveries in January, Fangtooth and Lau Lau. That brings the total of significant Stabroek discoveries to over 20, excluding a few large appraisal wells.