ExxonMobil announced on Tuesday that it has begun development drilling on Liza Phase 1 offshore Guyana, well ahead of the average industry pace.
The Irving, Texas-based oil supermajor said the drilling started last month on the first of 17 wells planned for Liza Phase 1, which is the first of three projects it has in the works offshore the South American country. The other two are Liza Phase 2 and the Payara development.
For Liza Phase 1, Exxon subsidiary Esso Exploration and Production Guyana Ltd is the operator and led stakeholder with 45% share in the Stabroek Block, which is estimated to have 3.2 billion barrels of oil equivalent (boe).
Its partners are Hess Guyana Exploration (30%) and CNOOC Nexen Petroleum Guyana (25%).
As part of the Liza Phase 1 project an oil tanker is being converted into a floating production, storage and offloading (FPSO) vessel.
When up and running, possibly as soon as 2020, Liza Phase 1 is expected to yield 120,000 barrels per day.
Liza Phase 1 is expected to generate over $7 billion in royalties and profits for Guyana over its lifespan.