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Production at ExxonMobil’s Liza Field Expected to Start in 2020

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ExxonMobil’s Liza field

ExxonMobil (XOM) has made the final investment decision (or FID) to develop offshore Guyana’s Liza field. The company anticipates production will start in 2020. The Liza phase one is expected to produce around 120,000 bpd (barrels of oil per day) with a subsea production system and an FPSO (floating production, storage, and offloading) vessel.

Liza field, positioned at the water depth of 1,500-1,900 meters, is ~190 kilometers off the shore of Guyana. The field is a part of the Stabroek block, which also contains the Liza Deep, Snoek, and Payara fields. For more on the Payara field, read Once Again, ExxonMobil Discovers Oil in Guyana. Also, the Liza-4 well has shown promising results and is a likely candidate for Liza phase two development. Overall, the Stabroek block’s gross recoverable resources now stand between 2 billion and 2.5 billion barrels of oil equivalent.

The block is operated by ExxonMobil’s affiliate Esso Exploration and Production Guyana Limited, who has a 45% stake in it. Hess Guyana Exploration Limited and CNOOC Nexen Petroleum Guyana Limited have a 30% and 25% stake, respectively, in the block.

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ExxonMobil’s upstream production growth

The production from the Liza field will add to ExxonMobil’s upstream segment, which is expecting a series of projects to start up in the next two years. The company expects five major projects to start up in 2017 and 2018. These projects are anticipated to add working interest production of 340,000 boepd (barrels of oil equivalent per day). We’ll discuss the upstream growth activities in the next part.

Series outline

In this series, we’ll look at ExxonMobil’s (XOM) financial and operational performance by reviewing its capex details, analyst ratings, dividend outflows, earning model dynamics, and upstream and downstream operational performance. We’ll also analyze XOM’s leverage and cash flow position.

For more on ExxonMobil’s future growth trajectory, please move on to the next part.

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