ExxonMobil moves ahead with Payara development offshore Guyana

ExxonMobil Corp. affiliate Esso Exploration & Production Guyana Ltd. (EEPGL) made a final investment decision to proceed with Payara field development offshore Guyana and has let contracts to advance the project’s next phase.

Payara, the third project in the Stabroek block, received government approvals and is expected to produce up to 220,000 b/d of oil after startup in 2024 using the Prosperity floating production, storage and offloading (FPSO) vessel (OGJ Online, Sept. 10, 2018).

The $9 billion development will target an estimated resource base of about 600 MMboe. Ten drill centers are planned along with up to 41 wells, including 20 production wells and 21 injection wells.

Exxon confirmed the award contracts for the next phase of development following completion of front-end engineering and design studies, completion of the multi-purpose hull, receipt of requisite government approvals, and project FID. Under its existing long term FPSO supply agreement with ExxonMobil, SBM Offshore will construct, install, and then lease and operate the Prosperity FPSO for up to 2 years, after which ownership and operation will transfer to EEPGL (OGJ Online, Nov. 7, 2019).

The FPSO design largely replicates that of Liza Unity, incorporating SBM Offshore’s newbuild, multipurpose hull combined with several standardized topsides modules. It is designed to produce 220,000 b/d of oil with associated gas-treatment capacity of 400 MMcfd and water injection capacity of 250,000 b/d. It will be spread moored in water depth of about 1,900 m and will be able to store around 2 million bbl of crude oil.

EEPGL also has let a contract for the project’s subsea system. TechnipFMC, in a contract valued by the service provider at $500 million to $1 billion, will manufacture and deliver the system, including 41 enhanced vertical deep water trees and associated tooling, six flexible risers, and ten manifolds, along with associated controls and tie-in equipment.

Additional development

With the FID announcement, ExxonMobil said Liza Phase 2 remains on track to begin oil production by early 2022. At peak rates, it will produce up to 220,000 bo/d using the Liza Unity FPSO, which is under construction in Singapore. Exxon’s first offshore Guyana project, Liza Phase 1, began producing in late 2019 following delivery of the Liza Destiny FPSO now moored 120 miles offshore (OGJ Online, Aug. 29, 2019). 

Evaluation of additional development opportunities in the block—including Redtail, Yellowtail, Mako, and Uaru—continue, the operator said, along with the current plan to have five drillships operating offshore Guyana by yearend.

The 26,800-sq km Stabroek block holds estimated recoverable resources of more than 8 billion boe. The 18 discoveries on the block to date have established the potential for at least five FPSO vessels producing more than 750,000 bo/d by 2026.

Esso E&P Guyana is operator and holds a 45% interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Ltd. holds 25% interest.