Stabroek

Stabroek Block Oil Project Profile

Location and Geology

The Stabroek Block is located approximately 190 kilometers (120 miles) offshore Guyana, in the Guyana Basin. This area is characterized by sediments of Amazonian origin, deposited by the Guiana Current. The block spans 26,800 square kilometers (6.6 million acres) and is a relatively unexplored region, with previous drilling activities in the 1970s yielding non-commercial results. However, recent seismic data and geologic analysis have indicated the presence of multiple oil and gas play types, including Cretaceous and amplitude-supported plays.

Operators and Partners

The Stabroek Block is operated by Esso Exploration and Production Guyana Limited (EEPGL), a subsidiary of ExxonMobil, which holds a 45% interest in the block. The other partners are Hess Guyana Exploration with a 30% interest and CNOOC Nexen Petroleum Guyana with a 25% interest.

Discoveries and Reserves

Since the initial discovery in 2015, the Stabroek Block has seen numerous significant oil discoveries. Here are some key discoveries:

• Liza Field: Discovered in May 2015 by the Liza-1 well, it is the first and largest discovery in the block, with recoverable reserves estimated to be over six billion barrels of oil equivalent.
• Other Discoveries: Include Liza Deep, Payara, Snoek, Turbot, Ranger, Pacora, Longtail, Hammerhead, Pluma, Tilapia, Haimara, Yellowtail, Tripletail, Mako, Redtail, Barreleye, Patwa, and Lukanani, among others. The total gross recoverable resource for the Stabroek Block is now estimated to be nearly 11 billion oil equivalent barrels.

Development Phases

Liza Field Development

• Phase One:

  • Began production in December 2019.
  • Involves 17 wells (eight production wells, six water injection wells, and three gas injection wells).
  • Utilizes a floating production, storage, and offloading (FPSO) vessel named Liza Destiny, with a production capacity of up to 120,000 barrels of oil per day (boed).
  • The FPSO has associated gas treatment capacity of 170 million cubic feet per day and water injection capacity of roughly 200,000 barrels per day. It also has a crude oil storage capacity of 1.6 million barrels.

• Phase Two:

  • First oil production began in February 2022.
  • Involves 30 wells (15 production wells, nine water injection wells, and six gas injection wells).
  • Utilizes the FPSO Liza Unity, with a production capacity of up to 220,000 boed.
  • The FPSO has gas processing capacity of 400 million cubic feet per day and water injection capacity of 250,000 barrels per day. It also has a storage capacity of two million barrels of crude oil.

Other Developments

• Payara Field: The third oil development in the block, which came online in November 2023, producing over 250,000 boed.
• Yellowtail and Uaru Fields: Scheduled to come online in 2025 and 2026, respectively, each with an oil output capacity of 250,000 boed.
• Whiptail Field: The sixth oil development, expected to start production in late 2027, with a production capacity of 250,000 boed and targeting an estimated resource base of more than 850 million barrels of oil.

Infrastructure and Contractors

• FPSO Vessels:
  • Liza Destiny (Phase One): Converted from the Bahamas-flagged VLCC Tina at Keppel Shipyard in Singapore.
  • Liza Unity (Phase Two): Currently operational.
  • Jaguar (Whiptail): Under construction.
• Contractors:
  • SBM Offshore: Awarded the front-end engineering and design (FEED) contract for the Liza-1 FPSO and responsible for its construction, installation, lease, and operation.
  • Spectrum: Supplied 2D seismic data for the evaluation of the Liza prospect.

Production and Economic Impact

• Current Production: The Stabroek Block is currently producing over 600,000 boed, with expectations to reach approximately 1.3 million boed by the time the Whiptail project comes online in 2027.
• Economic Impact: The projects in the Stabroek Block are projected to create tens of billions of dollars in revenue and significant economic development for Guyana. Since the first production in December 2019, more than $4.2 billion of revenues from the block have been deposited into the Guyana Natural Resource Fund. Guyana is expected to rank among the world's 15 largest oil-producing countries by the mid-2030s.

Workforce and Local Impact

• Local Workforce: Approximately 6,200 Guyanese are employed to support Stabroek operations, which is about 70% of the total workforce.
• Cumulative Spending: ExxonMobil's cumulative spending on Guyana and its contractors with Guyanese suppliers has topped $1.5 billion by the end of 2023.

Environmental and Emissions Considerations

• The Stabroek block developments are noted for having among the lowest emissions intensity assets in ExxonMobil's upstream portfolio, contributing to reliable energy supplies while maintaining environmental performance.