Exxon to pump 1st oil from Liza Unity by March month-end

…Guyana to earn US$957.6M from oil sector this year
With the Guyana Government using the Natural Resource Fund’s $126.7 billion to finance the massive 2022 budget, the country is set to earn another whopping US$957.6 million from the oil and gas sector this year.
This is according to Senior Minister with responsibility with Finance Dr Ashni Singh, during his presentation of the $552.9 billion budget for the 2022 fiscal year.
He noted that the projected inflows from the petroleum industry this year is expected to be more than the US$607.6 million Guyana has earned thus far.

Liza Unity FPSO’s first oil lift is set for March month-end

“With two FPSO (Floating Production Storage and Offloading) vessels expected to be in operation this year, it is anticipated that there will be 94 lifts from the Stabroek Block, 13 of which will be Government lifts. From this, it is estimated that deposits into the NRF for 2022 will total US$957.6 million, comprising some US$857.1 million earned from the Government lifts of profit oil, and an additional US$100.5 million from royalties,” he explained.
Since oil production commenced in December 2019, Guyana has earned US$607.6 million from its share of nine oil lifts and from royalty payments at the Liza 1 Field in the oil rich Stabroek Block.
The Finance Minister noted that Government has injected the entire $126.7 billion from the oil fund into Budget 2022 to ensure the accelerated development agenda, critical investments and the various measures are financed without excessive borrowing or the introduction of any new taxes.
This proposed withdrawal is being done in accordance with provisions catered for in the recently passed NRF Act, which was heavily objected to by the APNU/AFC Opposition.
However, Opposition Member of Parliament and Deputy Speaker, Lenox Shuman, contended that the passage of the NRF legislation has paved the way for the use of the oil funds to support the transformational ascent of Guyana.
“I am grateful that that oil resources are being untethered and being used for national development. I think it is important that the NRF Bill [has] gone through. I don’t think we would have seen the kind of development projected for the country, had we constrained the Government with the NRF Bill,” stated Shuman, whose party – the Liberty and Justice Party – is part of a Joinder List with two other political parties and takes up one seat in the parliamentary Opposition’s side.
Meanwhile, Attorney General and Legal Affairs Minister, Anil Nandlall, SC, has defended the use of the oil money in the face of mounting criticisms, which he described as “baseless”.
“We are spending in this budget every single cent that would be withdrawn from that fund, and much more. What that means is that every single cent of that money has to pass through the Parliament, through the appropriation process. It has to be interrogated and investigated in the Committee of Supply. The public will see, the Opposition will be able to question, to probe. So the allegation that there is going to be corruption, and thievery ought to now be rendered hollow and should dissipate,” Nandlall asserted.
He further contended, “What use are we making of the oil money?… [Budget 2022] is a budget that embraces every facet of life in Guyana. Every area of human endeavour has been touched by this budget …the oil monies are being put into the budget for the benefit of all Guyanese”.

Production at second oil platform
Since the discovery of Guyana’s light crude in commercial quantities offshore in 2015, there has been 28 oil finds to date in the Stabroek Block and an estimated recoverable resource of over 10 billion oil-equivalent barrels.
United States oil giant, ExxonMobil is currently undertaking three production projects Liza 1, Liza 2, and Payara in the oil-rich block. Production capacity is currently at 120,000 barrels per day (bpd) with the Liza Destiny FPSO in operation.
However, it is anticipated that the country’s production capacity will nearly triple to 340,000 bpd with the operationalisation of the Liza Unity FPSO at the Liza 2 field project in the first quarter of this year.
In fact, reports are that the first oil lift from Liza Unity, which has the capacity to produce 220,000 bpd, will take place at the end of March. The oil major’s second platform is expected to reach full production in the third quarter of this year.
With the full operationalisation of the two oil platforms, a total of eight lifts per quarter is projected.

Further raise production
Meanwhile, the deployment of the Liza Prosperity FPSO in 2024 will further raise production capacity to 560,000 bpd. This platform is currently being constructed for the Payara development project.
Exxon’s fourth production area, Yellowtail, is currently being reviewed by Government and is slated to come online in 2025. It is estimated that with this development project on stream, production will climb to 810,000 bpd by 2027.
The US oil major anticipates at least six FPSOs producing 1 million bpd by 2030.
The oil rich Stabroek Block is 6.6 million acres (26,800 square kilometres). Exxon, through its local affiliate Esso Exploration and Production Guyana Ltd (EEPGL), is the operator and holds 45 per cent interest in the block. Hess Guyana Exploration Ltd holds 30 per cent interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest. (G8)