July

Location

The project is located offshore in Guyana, specifically within the Stabroek Block, approximately 190 kilometers offshore.

Project Overview

The Guyana oil project, led by ExxonMobil, involves several phases of development:

• Liza Phase 1: This phase includes a floating production, storage, and offloading (FPSO) vessel. The project is producing more than 120,000 barrels of oil per day and has a storage capacity of up to 1.6 million barrels. It features four drill centers with 17 wells, including eight oil-producing wells, six water injection wells, and three gas reinjection wells.

• Liza Phase 2: This phase involves a second FPSO vessel named Liza Unity. Production began in February 2022 and is expected to reach up to 220,000 barrels of oil per day. The development includes six drill centers and 30 wells, comprising 15 oil-producing wells, nine water injection wells, and six gas injection wells.

• Payara Project: This phase includes a third FPSO vessel named Prosperity. The project aims to produce 220,000 barrels of oil per day and involves 10 drill centers with 41 wells, including 20 production wells and 21 water and gas injection wells. Startup is expected in 2023.

Technical Details

• Exploration Discoveries: The Stabroek Block has seen multiple significant discoveries, including Yellowtail, Redtail, Barreleye, Patwa, and Lukanani. These discoveries have added to the gross recoverable resource estimate, now nearly 11 billion oil equivalent barrels.

• Water Depths: The wells are drilled in various water depths, ranging from 1,500 to 1,900 meters for the Liza Phase 1, and up to 6,315 feet (1,925 meters) for other discoveries like Patwa-1.

• Well Details: For example, the Redtail-1 well encountered approximately 232 feet (70 meters) of high-quality oil-bearing sandstone, and the Yellowtail-2 well encountered 69 feet (21 meters) of net pay in a newly identified reservoir.

Environmental and Social Impacts

While the Guyana project does not have detailed environmental and social impact assessments in the provided sources, it is crucial to consider these aspects in any oil project:

• General Considerations: Oil projects often pose risks to marine ecosystems and local communities. Measures to mitigate these impacts, such as environmental impact assessments and community engagement, are typically part of the project planning.

• Comparison with Other Projects: For instance, the Manifa oil field project in Saudi Arabia involved significant environmental considerations, including the creation of man-made islands to minimize ecosystem damage. Similarly, the East African Crude Oil Pipeline (EACOP) project faces criticism for its potential environmental and social impacts, including effects on protected wildlife areas and local communities.

Economic Considerations

• Production and Revenue: The project is expected to produce significant amounts of oil, with Liza Phase 1 and Phase 2 combined producing up to 340,000 barrels per day, and the Payara project adding another 220,000 barrels per day. This will generate substantial revenue for the involved companies and the government of Guyana.

• Investment and Jobs: The project involves significant investment and is expected to create jobs both directly and indirectly. For example, the Amiral petrochemical complex in Saudi Arabia, though a different project, illustrates how large-scale energy projects can create thousands of jobs and stimulate local economies.

Conclusion

The Guyana oil project is a major undertaking with significant technical, economic, and potential environmental and social implications. It highlights the complexity and scale of modern oil and gas projects, which require careful planning, execution, and ongoing management to ensure both profitability and sustainability.