Liza Unity FPSO goes into production in Guyana
February 11, 2022, author: Nermina Kulovic
U.S. oil giant ExxonMobil has begun the first phase of production of the second phase of its Liza project in the Stabroek block, the second offshore development currently in production in Guyana.
Late Friday, ExxonMobil notified that Liza Phase 2 had begun production, with total capacity reaching more than 340,000 bpd in just seven years since the country first discovered the Liza field.
Production of Liza Unity floating, production, storage and unloading (FPSO) vessels is expected to reach the 220,000 barrels of oil target later this year.
Liza Destiny FPSO, which began production in December 2019 as part of the first phase of Liza's development, has a daily capacity of more than 120,000 barrels and is currently better than the design capacity after encountering technical difficulties last year. The amount of recoverable resources in the Stabroek block is currently estimated at more than 10 billion barrels of oil equivalent.
Liam Mallon, President of ExxonMobil Upstream Oil & Gas, said: "Through unparalleled project execution, we now have two production facilities off the coast of Guyana. ”
It should be noted that the Liza Unity ship arrived in Guyana in October 2021 after completion at the Chinese and Singapore shipyards. It is moored at a depth of about 1,650 meters and will be able to store about 2 million barrels of crude oil. It was the world's first FPSO to be awarded a sustainability mark by the U.S. Shipping Authority in recognition of the sustainability of its designs, documentation, and operating procedures.
According to ExxonMobil, current resources have the potential to support up to 10 projects. ExxonMobil expects four FPSOs with a capacity of more than 800,000 bpd to be operational in the Stabroek block by the end of 2025.
Payara is the third project in the Stabroek block, and the Prosperity FPSO vessel currently under construction is expected to produce about 220,000 barrels of oil per day.
In addition, the development plan and environmental permit application for the 4th project in the block, the Yellowtail project, has also been submitted to the government and regulatory authorities. ExxonMobil has signed a FEED contract with SBM Offshore in the Netherlands for Yorawtail FPSO. This will be the largest production unit ever built by SBM.
Guyana Esso Exploration and Production, a subsidiary of ExxonMobil, is the operator of the block and holds a 45 percent interest in the block. Hess Guyana Exploration holds a 30% interest and CNOOC Guyana Petroleum holds a 25% interest.
In a separate statement on Friday, Hess also confirmed the first barrel of oil for Liza Unity FPSO.
John Hess, CEO of Hess, commented: "The world will need these low-cost oil resources to meet future energy needs and help ensure an affordable, just and secure energy transition. ”
Image credit: SBM Offshore
Enauta will complete its existing FPSO in 2024
to make room for the first oil project
February 10, 2022, author: Nermina Kulovic
Brazilian oil and gas company Enauta has completed a deal to purchase FPSOs for its Deepinive System, located in Anlanta's oil field near Brazil.
Pursuant to a letter of intent in December 2021, Enauta reached an agreement with Yinson to purchase FPSO OSX-2 in January 2022. The agreement depends on compliance with the agreed terms of the contract.
Enauta announced Wednesday that it has completed the purchase of atlanta's FPSO OSX-2 for $80 million and has paid in full.
Décio Oddone, CEO of Enauta, commented: "The acquisition of existing units at an attractive price significantly improves the expected return on Atlanta, in addition to optimizing the time required to implement the final system to obtain the first oil in mid-2024, subject to project approval.
Oddone further added that the clause, together with the extension of the Petrojarl I contract, allows for production continuity during the transition from the early production system to the final system.
Located in the Santos Basin, the Atlanta field is operated by Enauta Energia, a wholly owned subsidiary of the company, which also owns a 100% interest in the asset. Since 2018, the field has been producing through the Early Production System (EPS) – including three wells connected to FPSO Petrojarl I.
Enauta signed an agreement with Altera in January 2022 to extend the leasing, operation and maintenance of petrojarl I FPSO for the Early Production System (EPS) in the Atlanta field. These agreements are for an additional period of up to two years, and their validity is extended from May 2023 to May 2025. The extension depends on the issuance of the DNV certificate before the expiration of the current agreement.
Also this week, Enauta signed a rig contract for operations at the Atlanta field, under which Alpha Star Rig has signed a contract to perform drilling for the fourth well of EPS in Atlanta.
With the approval of the Board of Directors, the agreement could be renewed for a further 150 days for drilling operations involving two other production wells and the relocation of the production line.
Yinson this week struck another FPSO deal, a deal with Petrobras to provide FPSO services for the Parque das Baleias integrated project, which will be installed in the Jubarte oil field off the coast of Brazil. The total value of the contract is estimated at $5.2 billion, and the FPSO is expected to begin operations in the fourth quarter of 2024.
Image source: Divulgação
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