ExxonMobil makes final investment decision for $4.4 billion Guyana oil field

ExxonMobil makes final investment decision for $4.4 billion Guyana oil field

ExxonMobil (NYSE:XOM) has made a final investment decision to proceed with the first phase of a US$4.4 billion offshore oil development in Guyana, one of the largest oil finds of the past decade.

The first phase of the Liza Field development will incorporate a subsea production system and a floating production, storage and offloading (FPSO) vessel with a production capacity of 120,000 barrels per day (bpd).

Fellow US energy company Hess Corp also confirmed it would be moving forward with the first phase of the project, which it holds a 30% interest in.

Both companies put the resources estimate for the wider offshore area in which the Liza field is located in at between 2-2.5 billion oil-equivalent barrels.

First oil is expected to flow in 2020, less than five years after the discovery was made off the coast of the tiny South American nation.

“We’re excited about the tremendous potential of the Liza field and accelerating first production through a phased development in this lower cost environment,” said Liam Mallon, president of ExxonMobil Development Company.

Guyana’s burgeoning oil sector has recently been boosted by support from the International Monetary Fund (IMF) regarding national plans to develop a legal framework for managing its oil wealth.

@RGNonline