Offshore Activity

Fast-track FPSO Eyed For Guyana

 

Subsea Engineering News

Excitement is building around Exxon Mobil’s Liza discovery off Guyana, the country’s first oil find.

Last May, Exxon Mobil reported that its Liza-1 (SEN, 32/5) well found 90 m of high-quality oil-bearing sandstone, and estimates of oil in place and/or recoverable have been high.

Now ExxonMobil is considering a fast-track development of Liza, taking an approach that’s more like Petrobras than Exxon Mobil, as Wood Mackenzie analyst Julie Wilson puts it.

The possible plan: Take a smallish, used FPSO vessel from an existing field, do some modifications, moor it at Liza and start producing by 2018.

Then, if appraisals are strong and development unfolds favourably, use the cash flow from the first FPSO production to help fund the project, eventually bringing in a larger, perhaps purpose-built FPSO for the long term.

Categories: Offshore Activity

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