Guyana’s oil production to be boosted as Prosperity FPSO arrives

…vessel to push daily production to 600,000 bpd by 2024

Production of oil offshore Guyana will soon be almost doubled as the Prosperity floating production, storage and offloading (FPSO) vessel that will service Guyana’s third oil development, Payara, has arrived in the country’s waters.
The arrival of the Prosperity FPSO was announced by ExxonMobil local subsidiary Esso Exploration and Production Guyana Limited (EEPGL) on Tuesday. The vessel will be used in the Payara development, which is slated to begin production later this year.
According to EEPGL Production Manager Mike Ryan, the arrival of this vessel is a testament to the strong partnership between the company, the Government of Guyana, its co-venturers in the Stabroek Block and the many suppliers that support its operations.
“The arrival of the Prosperity FPSO is a testament to the strong partnership between ExxonMobil Guyana, the Government of Guyana, our co-venturers and the many suppliers that support our operations. We are excited to contribute to Guyana’s energy future and create lasting opportunities for the nation’s growth and prosperity,” Ryan said.
Constructed by SBM Offshore, the Prosperity FPSO will develop the Payara field in the offshore Stabroek Block. It has an initial production capacity of around 220,000 barrels of oil per day and an overall storage volume of two million barrels.
The Prosperity FPSO joins the Liza Destiny and Liza Unity FPSOs, which are currently producing more than 380,000 barrels per day. Production from the Prosperity vessel is expected to push daily production to some 600,000 barrels a day in 2024. ExxonMobil said installation campaigns are ongoing and development drilling is underway to support Prosperity’s start-up later this year.
Guyana, with US oil giant ExxonMobil as the operator, began producing oil on December 20, 2019, in the Stabroek Block. Guyana’s oil revenues are being held in the Natural Resource Fund (NRF) at the New York Federal Reserve Bank, where it is earning interest.
The oil rich Stabroek Block, which is producing the oil, is 6.6 million acres (26,800 square kilometres). Exxon, through its local subsidiary Esso Exploration and Production Guyana Limited (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.
Since last year, Guyana has been recording weekly lifts in the Stabroek Block, with oil production now at 340,000 barrels per day from the Liza Destiny and Liza Unity FPSO vessels. With EEPGL making weekly lifts, Guyana’s crude entitlement of one million barrels occurs monthly from the two FPSOs.
ExxonMobil has said it anticipates at least six projects offshore Guyana will be online by 2027. Production has already started in the second phase, with the Liza Unity FPSO vessel in operation.
The third project – the Payara development – will target an estimated resource base of about 600 million oil-equivalent barrels, and was at one point considered to be the largest single planned investment in the history of Guyana.
Meanwhile, the Yellowtail development, which will be oil giant ExxonMobil’s fourth development in Guyana’s waters, will turn out to be the single largest development so far in terms of barrels per day of oil, with a mammoth 250,000 bpd targeted.
The Uaru oil development, which will be the fifth one for the company offshore Guyana, is targeting between 38 and 63 development wells, including production, water injection, and gas re-injection wells. Exxon had previously also made known that they anticipate first oil from the Uaru development by late 2026 or early 2027.
ExxonMobil has meanwhile been seeking approval from the Environmental Protection Agency (EPA) for 35 exploration/appraisal wells in the Stabroek Block. The Cumulative Impact Assessment (CIA) of these wells was done by ERM Guyana, which conducts environmental, health, safety and risk assessments. It had said that no major environmental impacts would result from the project. (G3)