News releases Dec. 26, 2018
Statement regarding Guyana drilling and development activities
News releases Dec. 26, 2018
Two vessels operated by Petroleum Geo-Services ceased conducting 3-D seismic data acquisition in the northwest portion of the Stabroek Block offshore Guyana when approached by the Venezuela navy. The area where the incident occurred is more than 110 kilometers from the Ranger discovery, the closest of 10 oil discoveries made by ExxonMobil in the southeast section of the Stabroek Block.
Exploration and development drilling is continuing in the southeast area of the Stabroek Block. Activities related to the LizaPhase 1 development, which is expected to begin producing up to 120,000 barrels of oil per day in early 2020, are also unaffected.
ExxonMobil operates the Stabroek Block offshore Guyana under license from the government of Guyana. The acquisition of seismic data was being conducted under license from the government of Guyana in the country’s exclusive economic zone.
ExxonMobil estimates there is potential for at least five floating, production storage and offloading vessels (FPSO) on the Stabroek Block producing more than 750,000 barrels of oil per day by 2025.
Liza Phase 2 is expected to start production by mid-2022. Pending government and regulatory approvals, project sanction is expected in the first quarter of 2019 and will use a second FPSO designed to produce up to 220,000 barrels per day. Sanctioningof a third development, Payara, is also expected in 2019 with start up as early as 2023.
The Stabroek Block is 6.6 million acres (26,800 square kilometers). 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 Nexen Petroleum Guyana Limited holds 25 percent interest.
Cautionary statement: Statements of future events and conditions in this release are forward-looking statements. Actual future results, including project plans and timing, production rates and resource recoveries could differ materially due to factors such as changes in oil and gas prices and other market factors affecting the oil and gas industry; the outcome of future exploration and development projects; the outcome of commercial negotiations; the occurrence and duration of economic recessions; changes in political or legal factors including tax and environmental requirements and relations among governments; obtaining necessary government permits; the actions of competitors; unforeseen technical difficulties; and other factors discussed here and under the heading “Factors Affecting Future Results” on the Investors section of our website at www.exxonmobil.com. References to barrels of oil and similar terms include quantities that are not yet classified as proved reserves under SEC regulations but that are expected ultimately to be produced and moved to the proved reserve category.