ExxonMobil on Friday announced it has made a final investment decision (FID) and will go ahead with developing the Liza Field offshore Guyana, according to Reuters.
Liza, one of the biggest oil finds in recent times, is located in the Stabroek block which is estimated to hold as much as 2.5bn boe (barrels of oil equivalent).
Irving, Texas-based Exxon, through its subsidiary Esso Exploration and Production Guyana Ltd, holds a 45% stake in the Stabroek.
Its partners are a subsidiary of Hess Corporation (of New York) with 30% and a subsidiary of CNOOC (of China) with 25%.
Only discovered in 2015, Liza is expected to begin production in 2020.
It is around 190km off the coast of the South American nation in water 1,500m to 1,900m deep. Expectations are for it to yield 120,000 barrels of oil per day.
The development should include four drill centres with 17 wells comprising eight production wells, six water-injection wells and three gas-injection wells.
Costs for the first phase of the Liza development are anticipated to be around $4.4bn.
Exxon’s decision came a day after the Guyanese government issued a production licence for Liza to the US supermajor.