Bearish sentiment is building in…
The structure of the oil…
Guyana officially joined the ranks of oil producing nations, after ExxonMobil and its partners began oil production offshore the South American country.
ExxonMobil and its partner Hess Corporation launched oil production from the Liza field offshore Guyana ahead of schedule and less than five years after the first discovery of oil, the U.S. supermajor said in a statement.
The first cargo of oil from Guyana is set to be sold within several weeks, while production from Liza Phase 1 is expected to reach full capacity of 120,000 barrels of oil per day (bpd) in coming months, Exxon said.
“We are proud of our work with the Guyanese people and government to realize our shared long-term vision of responsible resource development that maximizes benefits for all,” Exxon’s chairman and CEO Darren Woods said.
Guyana’s President David Granger declared December 20 “National Petroleum Day” to mark the beginning of the first-ever oil production in the country.
Exxon has been the undisputed leader in exploration success in the newest offshore hot spot. In September, ExxonMobil made another oil discovery offshore Guyana, adding to a previously estimated recoverable resource of more than 6 billion oil-equivalent barrels on the Stabroek Block, just a few months before it begins oil production from the Liza Phase 1 development.
ExxonMobil has made more than a dozen oil discoveries offshore Guyana, which is the supermajor’s key development priority in the coming years together with significantly boosting shale production in the Permian basin in the U.S.
Liza Phase 1 will produce up to 120,000 bpd via the Liza Destiny floating production storage and offloading (FPSO). Exxon has also approved the Liza Phase 2 development, which is expected to begin production of up to 220,000 bpd by the middle of 2022. A third development, Payara, could begin pumping oil as soon as 2023, subject to government approvals, according to Exxon.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.