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Abstract In May 2015, ExxonMobil successfully brought in the Liza 1 wildcat well, 120 miles off the coast of the South American nation of Guyana in the Stabroek block, in the Guyana-Suriname basin. Prior to the Liza 1 success, there were 22 wells drilled by other companies, all of which proved to be non-commercial. ExxonMobil stated that recoverable reserves from the Liza field – Phase 1 development would be in the range of 0.8 – 1.4 billion barrels of oil equivalent. The Liza field is part of one of the most prospective basins in South America based on a US Geological survey report - the Guyana-Suriname basin. A representative model was created using Petrel, Wellplot Digitizer, PROSPER, CMG and Microsoft Excel and consists of eight (8) producers, three (3) gas injectors and six (6) water injectors as outlined in the ExxonMobil Phase 1 development plan. Simulation results indicate that over a twenty-five (25) year period approximately 456 MMSTB of oil and 3.5 TCF of gas, equivalent to 1.04 billion BOE will be recovered from the Liza Phase 1 development. Based on the Production Sharing Agreement between the Guyana government and ExxonMobil, an economic assessment was undertaken which quantifies the government share of revenues to be obtained from the Liza field – Phase 1 development. The variables in this economic evaluation included capital expenditure (CAPEX), oil and gas price, operational expenditure (OPEX), 2% royalty payment, cost recovery mechanism and 50% profit split to the Guyana government. Based on ExxonMobil estimated capital investment of $US 4.5 billion, an oil price of $US 50/bbl, gas price of $US 2.50/MMBTU and this project's projected operational expenses over the twenty five year period, total new revenue to Guyana over this period will amount to $US8.9 billion. It is also estimated that Guyana's share of the development cost will be paid back within six (6) years of commencement of production of the Liza field.
ExxonMobil Foundation said on 2 july that it will contribute $10 million to a new collaboration with Conservation International and the University of Guyana to train Guyanese for sustainable job opportunities and to expand community-supported conservation. The investment is also intended to support Guyana's Green State Development Plan, the country's 15-year development plan that aims, among other things, to diversify Guyana's economy and balance economic growth with the sustainable management and conservation of the country's ecosystems. The ExxonMobil Foundation will provide the investment over 5 years. Initial grant money will fund a feasibility study driven by Conservation International, through its affiliate Conservation International Guyana, to further define the details of the program. Once defined, Conservation International Guyana and the University of Guyana will deliver the education, training, research, and retention programs that will help ensure that economic growth reinforces Guyana's environmental development goals.
Abstract Local content optimization is one of ExxonMobil's global best practices. Once oil was discovered in Guyana, ExxonMobil Guyana made the unprecedented decision of initiating local supplier development before Final Investment Decision (FID) and contractually mandated prime contractors to work to support a robust local content regime. Initial steps taken included: Establishing local content requirements in the prime contractor contracts and hiring DAI Global (DAI) to establish the Centre for Local Business Development to provide a mechanism to engage local businesses. Contracting DAI Global to analyze the Guyanese business environment, identify early opportunities for local content, develop fit-for-purpose development programs, and plan for long-term sustainability of the Centre. Modifying standard procurement practices to facilitate local supplier entry into the oil and gas market through supplier forums, unbundling and supplier mentoring activities. The Centre for Local Business Development (Centre) was conceptualized and announced months before FID. The Centre provides fit-for-purpose local supplier development programs based on the evolving needs of local businesses to enter the oil and gas supply chain. The Centre focuses on three key areas: supplier engagement and registration, general business support, and supplier development. Engagement and registration focuses on allowing businesses to garner the necessary information to make strategic investment decisions. General business support aims to build a pool of businesses compliant international standards. Supplier development utilizes mentoring programs to enable businesses to make the transition into the oil and gas supply chain and potentially win tenders. Optimizing local content in countries where industrial development is limited requires understanding the local supply chain and implementation of fit for purpose interventions as early as possible; testing initiatives; and adapting to the needs of local suppliers, operator and prime contractors. This paper outlines how early intervention in local capacity building enables local companies in a developing market (inadequate business infrastructure and systems) to successfully transition into the oil and gas value chain.
Guyana is ready to explode. The small rainforest country nestled between Venezuela and Suriname has recently struck oil--a lot of it. With this newfound vast potential comes concern about developing the resources sustainably and with proper consideration for the country's people and environment. In 2014, ExxonMobil found oil in the Liza field of the Stabroek block offshore Guyana. Since then, several more discoveries have been made, the most recent in April 2019.
ExxonMobil and London independent Tullow Oil both announced oil discoveries offshore Guyana on 16 September, bringing their tallies in the basin to 14 and two, respectively. ExxonMobil's Tripletail-1 well on the Stabroek block encountered 33 m of high-quality oil-bearing sandstone reservoir, the US major said. Drilled in 2003 m of water, Tripletail-1 is 5 km northeast of ExxonMobil's Longtail discovery, marking the sixth find in the Turbot area. "This discovery helps to further inform the development of the Turbot area," said Mike Cousins, ExxonMobil senior vice president of exploration and new ventures. Tripletail-1 adds to the previously announced estimated recoverable resource of more than 6 billion BOE on the block. After wrapping up work at Tripletail, the Noble Tom Madden drillship will next drill the Uaru-1 well located 10 km east of ExxonMobil's Liza field, where production is scheduled to begin next year.