ExxonMobil to go ahead in developing Guyana's Liza-Payara oil field
Petroleumworld 06 19 2017
Exxon Mobil oil company, said on Friday it would go ahead with the development of the Liza oil field, located offshore Guyana.
Pablo Medina, Wood Mackenzie's senior analyst, Upstream, Latin America, had the following comment on ExxonMobil's decision to sanction the Liza development, offshore Guyana.
The short time it took ExxonMobil to go from Liza's discovery to declaring Final Investment Decision (FID) signals the competitiveness of the project, both within the company's portfolio and globally. Liza-Payara has a breakeven of US$46/bbl (Brent; using a 15% discount rate), which puts it in a very attractive position compared to other leading investment opportunities such as tight oil or deepwater Brazil. Very few deepwater projects have been pushed through FID during the oil price downturn. Only the very best projects have been sanctioned and this speaks volumes of Liza's potential.
We currently forecast the full development of Liza-Payara will produce over 330,000 b/d of oil at peak, with reserves of over 1.5 billion barrels of oil equivalent (bn boe). The successful exploration campaign has also led to the discovery of almost 3 trillion cubic feet of associated gas. The full development solution will need to address the challenge of gas monetisation, given the field's remoteness from the coast and the lack of a gas market in Guyana.
Guyana will have the task of managing the complexities of developing its first oil and gas field. Within 10 years, we expect the Liza-Payara development to produce 330,000 b/d – allowing Guyana to join the ranks of other Latin American producers, where legacy production has been in steady decline.
Production from the field is expected to begin by 2020, Exxon said.
Source: Woodmac / Reuters / Exxon
Reporting from Petroleumworld.
06 19 2017
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