Guyana grants oil production license to ExxonMobil for Liza offshore field

Liza Prospect DevelopmentGuyana grants oil production license to ExxonMobil for the Liza offshore project in Stabroek Block. The field is estimated to hold an excess of 1 billion oil-equivalent barrels and receiving of approval from the local authorities will allow the energy giant to proceed with exploration and analyze of the project. The production licence is required to be finalized before the developers make their final investment decision for the project in June 2017. SBM Offshore was selected to carry out front end engineering and design for the FPSO, in case of approval. The first flow from Liza field is expected to start in 2020.

“The Ministry of Natural Resources and other Ministries and Agencies are actively pursuing a number of undertakings on the policy, legislative and infrastructure sides to ensure that the country is prepared for the coming oil production. As this Ministry, along with others, seeks to develop our oil and gas industry in a sustainable and profitable manner, citizens are encouraged to continue to provide their feedback and recommendations on the new sector when the Ministry‚Äôs outreaches visit their communities”, said the official statement of the Government of Guyana.

The oil production from the Liza field is expected to start in 2020 at an initial rate of 100,000 barrels per day in the first phase. The Government of Guyana will receive a royalty of 2% on gross earnings and benefit from 50% of the profits from the sale of petroleum once production commences.

The Liza prospect is located approximately 120 nautical miles offshore Guyana in the 27,000-sq-km Stabroek block, which is operated by ExxonMobil affiliate, Esso Exploration and Production Guyana, holding 45% from the block.