US$9B Payara development 93% complete – project partner

The US$9 Billion Payara development, which will target approximately 600 million oil-equivalent barrels in the Stabroek block, is around 93 per cent complete and on track for a year end completion.
This was recently revealed by ExxonMobil’s Stabroek Block co-venture partner executive John Hess of Hess Corp. Described as Guyana’s single largest investment back when it was signed in 2020, the project would be Exxon’s third development in Guyana’s waters.
At the time he made this revelation, the Hess Chief Executive Officer (CEO) had been explaining that his company’s Capital Expenditure (CAPEX) has increased to US$3.7 Billion- a US$1 Billion increase in the new year.

The Prosperity FPSO earmarked for the Payara project

“You already have Payara, that should come on at the end of 2023. But we’re still doing construction, I think construction is 93 per cent complete on that project. We have Yellowtail, that’s in queue, coming on in 2025. Warrau, we’re doing some pre-investment in it now. But that’s going to be adding to our CAPEX in 2023.”
“So, the drivers of the CAPEX increases are basically what we have in three ships being in development in Guyana and we have three of our six drilling rigs in Guyana going to exploration and appraisals,” Hess said.
Hess further explained that most of his company’s investments are tied up in either the Bakken Shale in North Dakota or Guyana, with their investments in Guyana driven by the third ship that will have to be added for the Payara development.
The project in the Stabroek Block is expected to produce up to 220,000 barrels of oil per day after start-up in 2024, using the Prosperity Floating Production, Storage And Offloading (FPSO) vessel.
After a tedious review process, the Government of Guyana and ExxonMobil signed the license for Payara in October of 2020… making Payara the third Field Development Plan (FDP) from Exxon to gain approval.
The first FDP that the Guyana Government approved was for Liza Phase One, while Liza Phase Two was granted approval in 2019. Both projects are producing oil, with the Liza Phase Two having started up in 2022.
Prior to Payara’s approval, the Government of Guyana had decided to review the work already undertaken by the Department of Energy and Bayphase Oil and Gas Consultants on the Payara Project, so that the interest of all Guyanese would be protected and the Project would be in keeping with international transparency and accountability standards.
Most importantly, the Ministry had noted, the Canada-funded team of technical experts assessed the Project to ensure that all relevant regulations were complied with and were enforceable. “This included environmental standards and reservoir management to safeguard the interests of the people of Guyana and that their resources are developed in a sustainable and responsible manner to the benefit of the country”.
With nine oil discoveries and the startup of the Liza Phase Two, Exxon had a packed year in 2022. And this year will be an even more busy year for the oil company when Payara comes on stream. In an end of year interview, Exxon Country Manager Alistair Routledge had said that a number of exploration wells will be drilled this year.
“We’re drilling a number of exciting exploration wells and I look forward to the results of those, we have another major project start up with the Payara project coming before the end of the year, and of course many other projects and activities that continue to grow,” Routledge had said.
Exxon, through its local affiliate Esso Exploration and Production Guyana Limited (EEPGL), is the operator and holds 45 per cent interest in the Stabroek 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.
The company is currently undertaking four production projects – Liza 1, Liza 2, Payara, and Yellowtail in the oil-rich block. It is estimated that when the Yellowtail development project comes on stream, production will climb to 810,000 bpd by 2027.
The US oil major anticipates at least six Floating Production and Storage Offloading (FPSO) vessels in operation by 2027, with a seventh likely to be added should results from their Fangtooth-1 well appraisal be positive.(G3)