ExxonMobil’s Guyana discovery declared commercial

Published: November 18, 2016

Oil major ExxonMobil has declared its ‘world class’ Liza oil discovery, in Stabroek block offshore Guyana, commercial.

The company has this week officially given notice of its discovery of commercial quantities of oil in the area via a letter to the country’s Minister of Natural Resources, Raphael Trotman at the Ministry’s boardroom, Brickdam.

The minister noted that the notification given by the oil company is one that is required by Section 31 of the Petroleum Act.

He said that this is the first time in Guyana’s 50-year history as an independent nation, that the section of the Act is being activated.

“This is a profound and watershed moment in the development of our country … so there is great humility and great responsibility that comes with the handing over and receiving of this letter,” Minister Trotman explained.

The year 2016, Minister Trotman said, is the year of foundation building, with 2017 being the year of implementation of earmarked plans and programs.

The minister also said the government was looking forward to receiving the development plan for the offshore discovery.

Calls for development plan

According to the Guyanese government’s information agency, the Minister said the development plan would show all the partners in the project „are committed, and that the investment decision will be a positive one next year, and that we could move to production in the earliest possible time.“

“What you are seeing today, is the beginning of a very large effort which will unfold over the next few years as we finalize our plans, and implement them, trying to develop this field,”  said Vice President of ExxonMobil, Erik Oswald.

To remind, ExxonMobil’s claims of a ‘world class discovery’ offshore Guyana were further solidified in October, following the  completion the drilling of the Liza-3 well in the Stabroek block.

Hess Corporation, ExxonMobil’s partner in the project, said in its financial report then that the estimated recoverable resources for the Liza prospect “are now expected to be at the upper end of the previously announced range of 800 million to 1.4 billion barrels of oil equivalent.”

ExxonMobil has claimed to have found a world class discovery after drilling the Liza-1 and Liza-2 wells offshore Guyana. The Liza-1 well was drilled in March 2015 while the Liza-2 well was drilled earlier this year by ExxonMobil affiliate Esso Exploration and Production Guyana, some 2 miles (3.3 km) from the first Liza well.

 

Re-posted from: http://www.offshoreenergytoday.com/exxonmobils-guyana-discovery-declared-commercial/