Part of the team working on hook-up of the Liza Destiny FPSO offshore Guyana.

Record pace. These are the words being used to describe U.S. oil major ExxonMobil’s operations in Guyana where it has made over 25 discoveries since 2015 at the Stabroek Block, delivering over 10 billion barrels of oil equivalent and 2 developments that will this year triple the South American country’s oil production.

President of ExxonMobil Upstream Oil and Gas, Liam Mallon said the company is collaborating closely with the government and people of Guyana to develop their world-class resource responsibly and is doing so at a “record pace and well ahead of the industry average.”

Just Friday, Exxon announced that its second development – Liza Phase 2 – had started producing at the 6.6 million acres Stabroek Block. When production ramps up later this year, the 220,000 barrels per day (bpd) from Liza Phase 2 will add to the 120,000 bpd from Phase 1, pushing output to around 340,000 bpd. A third project at Payara is set to come online in 2025 and a fourth at Yellowtail, pending approval, will start-up in 2026.

The SBM Offshore built and operated Liza Unity FPSO arrived in Guyana in October 2021. It is moored in water depth of about 1,650 meters and will be able to store around 2 million barrels of crude. The Liza Unity is the world’s first FPSO to be awarded the SUSTAIN-1 notation by the American Bureau of Shipping in recognition of the sustainability of its design, documentation, and operational procedures.

“It is clearly a team of teams that delivered Unity to Guyana and got us to the spot where we are now,” said Mike Ryan, Production Manager at ExxonMobil Guyana. This includes the exploration teams that found the prolific reservoirs and the teams that worked on construction and fabrication of the FPSO, the world’s first to achieve SUSTAIN-1 notation.

The SUSTAIN-1 notation demonstrates the vessel’s alignment with key elements of the Environmental, Social and Governance (ESG) requirements outlined in the United Nations’ Sustainable Development Goals (SDGs).

SBM Offshore is also the builder and operator of the Liza Destiny FPSO, Guyana’s first oil production vessel, and is contracted to deliver the Prosperity and One Guyana FPSOs, for Exxon’s third and fourth developments at Payara and Yellowtail, respectively.

“Our project portfolio stands at a record level with five projects under execution and a large FEED underway for the Yellowtail development project for Exxon in Guyana,” CEO of SBM Offshore, Bruno Chabas said this week.

The current resource at Stabroek Block has the potential to support up to 10 FPSOs. Exxon said it anticipates that four FPSOs with a capacity of more than 800,000 barrels per day will be in operation on the blobk by year-end 2025.

“Timely development of these additional projects and continued exploration success offshore will enable the steady advancement of Guyanese capabilities and enhanced economic growth,” Exxon said.

To date, more than 3,500 Guyanese are now supporting the company’s activities in Guyana. Exxon and its direct contractors have spent approximately $219 million with more than 880 local suppliers in 2021, a 37% year-over-year increase.

Government applauds first oil from Liza Unity FPSO; earnings set to triple

By OilNOW -- February 12, 2022 -- 0 -- Source -- OilNOW -- Source -- https://oilnow.gy/featured/guy...-delivers-first-oil/

Vickram Bharrat - Guyana's Minister of Natural Resources

The Government of Guyana through the Ministry of Natural Resources said on Friday that it welcomes the announcement by ExxonMobil on the commencement of production at Guyana’s second offshore Development from the Liza Unity FPSO.

The operation of the vessel will realize its target of 220,000 barrels of oil per day later this year which will bring Guyana’s production capacity to more than 340,000 barrels per day, which includes the more than 120,000 barrels per day capacity at the Liza Destiny FPSO.

“The Government of Guyana and citizens welcome the operation of this new FPSO to sustainably extract and manage the country’s oil and gas resources, which will further enhance earnings from this sector to drive Guyana’s infrastructure development and improve the delivery of services to all citizens,” said Natural Resources Minister, Vickram Bharrat.

Mr. Bharrat pointed out that the increased total daily capacity of oil augers well for Guyana, especially on the heels of operationalizing the Local Content Secretariat and the Natural Resources Fund, in keeping with the Santiago Principles of transparency and accountability within the petroleum sector. Further, the GoG will be taking all necessary steps to ensure that all Guyanese benefit from the earnings derived from the petroleum sector.

As such, the Government of Guyana has mandated the Ministry of Natural Resources to coordinate and work closely with international partners, local regulatory agencies, and key stakeholders within the petroleum sector to ensure the sector performs optimally in keeping with internationally recognized best practices.  

The Ministry of Natural Resources will continue to work with ExxonMobil which will bring at least four FPSOs into operation to produce more than 800,000 barrels per day from the Stabroek Block by the end of 2025. Additionally, Payara, the third project in the Stabroek Block, is expected to produce approximately 220,000 barrels of oil per day using the Prosperity FPSO vessel, which is currently under construction. The field development plan and application for environmental authorization for the Yellowtail project, the fourth project in the block, have been submitted for review by the government and other regulatory approval.

The Liza Unity arrived in Guyana in October 2021. It is moored in a water depth of about 1,650 meters and will be able to store around 2 million barrels of crude. The Liza Unity is the world’s first FPSO to be awarded the SUSTAIN-1 notation by the American Bureau of Shipping in recognition of the sustainability of its design, documentation, and operational procedures.

Jaggy makin some good coin deh

Guyana optimistic about becoming gas exporter as more projects come online – Vice President

By OilNOW -- February 12, 2022 -- 0 -- Source -- OilNOW -- Source -- https://oilnow.gy/featured/guy...line-vice-president/

Guyana's Vice President, Dr. Bharrat Jagdeo.

Guyana’s Vice President, Dr. Bharrat Jagdeo has confirmed that as more offshore projects come online, the South American country is hopeful of becoming an exporter of gas, or value-added products derived from gas.

“Guyana is not looking to be a gas exporter immediately because there is only 50 million standard cubic feet of gas that is coming on board (via the Gas-to-Energy Project),” Dr. Jagdeo told OilNOW. “But in the future, we are definitely hoping we can export gas or value-added activities that are based on using gas as a raw material.”

On Friday the Guyana government and ExxonMobil announced start of oil production at the country’s second development – Liza Phase 2. When production ramps up later this year, Guyana’s output will triple and more projects are in the pipeline for startup in the coming years.

During the unveiling of the GY$552.9B budget which is backed by revenues from Guyana’s Natural Resource Fund, Senior Minister with responsibility for Finance, Dr. Ashni Singh said that the current estimate of the gas reserve is 16 trillion cubic feet (Tcf) with projections from Liza 1 and 2 likely at 50 million standard cubic feet per day (mmscfd) while Payara will bring an additional 20 mmscfd. While it is the consensus among members of government that this augurs extremely well for the Gas-to-Energy Project, it is the projections by ExxonMobil in the Environmental Impact Assessment (EIA) for the Yellowtail development that really support the notion for Guyana to consider being a gas exporter.

Since Liza Phase 1, Liza Phase 2 and Payara would satisfy the currently identified gas demand in Guyana, Exxon stressed that there is not enough additional demand in Guyana to consume the quantities of associated gas that will be produced from the Yellowtail Project which is expected to peak at around 450 MMscfd. It said, “A decision with respect to the export of gas from the Yellowtail Project will be made in the future. But gas export to shore or another phase of field development may be considered. Space reservation and basic design connections to allow for this are included in the Project scope.”

With respect to negotiations on the price to transport gas via the gas-to-energy project, Dr. Jagdeo said these are continuing with the hope for the completion of an agreement this month.

He assured that the model agreed upon would be explained to the citizenry.

@cain posted:

Jaggy makin some good coin deh

Oiii Cain ...

The coins are for the development of Guyana and Guyanese.

Jaggy in front of cameras more than Prezzy Puppet...Jaggy hand must be tired working the puppet so he said " look here leh me do the talkin yeh"..ai ai ai ai ai

Huge waves overtopping the sewall at a section of Guyana’s Atlantic coast

The call by some individuals and groups for Guyana to leave its vast hydrocarbon resources in the ground is being viewed as ironic by a scholar at the Florida International University’s Jack D. Gordon Institute for Public Policy. He said as a starting point, Guyana should consider allocating a percentage of its oil and gas revenue to be devoted to tackling climate change via adaption and mitigation efforts. This includes reinforcing the sea wall and passing legislation that ensures that all homes are built or reinforced with building codes capable of withstanding strong storms and flash flooding.

“Further, revenue should continue to be used to build more roads to quicken response times after sudden-onset climate events,” said Wazim Mowla in his most recent column published by OilNOW last week.

In fact, Mowla, a Guyanese American and assistant director of the Caribbean Initiative at the Atlantic Council’s Adrienne Arsht Latin America Center, said as years go by and climate change worsens, there should be an automatic increase in the percentage of Natural Resource Fund revenue used to address climate concerns.

“The argument to keep Guyana’s oil in the ground is ironic, as many have the foresight to see the damaging effects of climate change in the next 10 to 15 years but are blind to the plight developing countries find themselves in today if they cannot access requisite financing that allow them to survive the next decade,” Mowla said.

He was adamant in pointing out that the world still needs oil, and demand is not expected to start tapering off until 2035 before slowing down gradually into the mid-century.

“How then should Guyana see itself in a world of seeming contradictions – fueled by the very resource some are ardent should remain in the ground? The answer is simple. The only meaningful way to stave off the growing effects of climate change is to arm itself and the rest of the Caribbean with the financial resources to adapt to a changing global atmosphere,” he posited.

The new oil producing country will rake in billions of US dollars in the coming years as vast oil fields discovered offshore by ExxonMobil move into production. Two developments are already online and as much as ten are anticipated by the end of the decade.

‘One Guyana’ will deliver biggest daily production for new oil nation

By OilNOW -- February 13, 2022 -- 0 -- Source -- OilNOW --  https://oilnow.gy/featured/one...-for-new-oil-nation/

The hull for a Guyana-bound FPSO.

Pegged at a massive 250,000 barrels of oil per day, the floating production storage and offloading (FPSO) vessel for ExxonMobil’s fourth project at Stabroek Block has been named One Guyana and will join its sister vessels Liza Unity, Liza Destiny and Prosperity.

Commenting on the start-up of oil production operations last week on the Liza Unity FPSO, Mike Ryan, Production Manager at ExxonMobil Guyana, said, “we have a fourth [FPSO] Yellowtail on the way actually named One Guyana…and we have potentially up to seven to ten oil and gas developments.”

The combined output of these developments will push Guyana’s daily production to well over 800,000 barrels of oil per day by 2025.

The field development plan and application for environmental authorization for the Yellowtail project have been submitted for government and regulatory approval which is expected soon.

Dutch floater specialist SBM Offshore has been awarded contracts to perform Front End Engineering and Design (FEED) for the One Guyana FPSO.

The company said following FEED, subsequent government approvals in Guyana for the development plan and project sanction including final investment decision by ExxonMobil, it will construct, install and then lease the FPSO and operate it for a period of up to 2 years.

SBM Offshore will design and construct the FPSO using its industry leading Fast4Ward® programme allocating the company’s sixth new build, Multi-Purpose Hull combined with several standardized topsides modules.

The One Guyana FPSO will have associated gas treatment capacity of 450 million cubic feet per day and water injection capacity of 300,000 barrels per day. The FPSO will also be spread moored in water depth of about 1,800 meters and will be able to store around 2 million barrels of crude oil.

Building on the experience to date on the Liza Destiny, Liza Unity and Prosperity FPSOs, SBM Offshore said it continues to commit to local content development in Guyana through sourcing fabrication scope locally and the integration of Guyanese engineers in the execution and operational teams.

More money for Guyana. Just imagine our finance minister projected oil revenues of US$957 million in 2022 based on an average price of $74 per barrel.  Brent crude is currently at $94 per barrel and many experts believe it will go past a $100.  What does this mean for Guyana?  It means if oil remains at average of $94 per barrel the nation will earn somewhere around US$1,275 to US$1,300 million in the current year.  Bad news for inflation in oil dependent economies but a windfall for oil producing nations.  This could the year that really give Guyana the massive boost it needs.

@Billy Ram Balgobin posted:

More money for Guyana. Just imagine our finance minister projected oil revenues of US$957 million in 2022 based on an average price of $74 per barrel.  Brent crude is currently at $94 per barrel and many experts believe it will go past a $100.  What does this mean for Guyana?  It means if oil remains at average of $94 per barrel the nation will earn somewhere around US$1,275 to US$1,300 million in the current year.  Bad news for inflation in oil dependent economies but a windfall for oil producing nations.  This could the year that really give Guyana the massive boost it needs.

As I have pointed out on numerous occasions there will be development in Guyana but not on the scale envisaged or propogated by some.  Let's assume that at some time in the future Guyana earns $US10B per year from oil.  Assuming a population of 1,000,000 for ease of calculation that works out to US$10000 per capita.  I will leave you to do the research on how that compares to the rest of the world. 

I love to look at things from a per capita basis. From what the analysts are saying is that we will produce and earn more from oil than the Saudis on a per capita basis.  With an additional 10 billion per year it will help build other industries such as tourism and agriculture which will more revenue.  I think you realized by now that Clive Thomas is only economist who is living in lalaland with his big promises of cash grants to the citizens.

Billyboy

How many years until the wells runs dry ? I have read many articles on Guyana oil extraction ,one named Guyana on a slippery slope with the new oil find.

@Billy Ram Balgobin posted:

I love to look at things from a per capita basis. From what the analysts are saying is that we will produce and earn more from oil than the Saudis on a per capita basis.  With an additional 10 billion per year it will help build other industries such as tourism and agriculture which will more revenue.  I think you realized by now that Clive Thomas is only economist who is living in lalaland with his big promises of cash grants to the citizens.

Just lookup a table of per capita income by country, add $10000 to the figure for Guyana and then see where that puts Dubai Guyana.  You will be disappointed.  Clive Thomas is the best economist Guyana has produced.   I met him once and he is easy to talk to.  His idea of cash grants was to take favourism out of the equation to distribute wealth. He is not living in lalaland.  He is aware that left in the hands of government the dsitribution of wealth will not be equitable.

Mr. T

I had to research the gdp per capita of saudi Arabia and UAE and it turned out to 20k (Saudi) and 32k(UAE). Guyana's good per capita is about 7k. If calculate the impact of 10 billion addition to GDP in  country of 800k population we get an additional per capita of 12.5k. Add this to 7k and we are at level of SAudi Arabia.  Go check k it out.

Thanks for your info.