Liza Oil Field Phase Two Development, Stabroek Block

Liza deepwater oil field in the Stabroek Block, approximately 190km offshore Guyana, is planned for a second phase offshore development.

Liza is the first oil field discovered and planned to be brought into production in the Stabroek Block, which is operated by ExxonMobil’s subsidiary Esso Exploration and Production Guyana (EEPGL).

EEPGL holds a controlling 45% stake in the block, while Hess Guyana Exploration and CNOOC Nexen Petroleum Guyana own 30% and 20% interests, respectively.Estimated to cost $6bn, the Liza phase two development targets 600 million barrels of recoverable oil in the Stabroek Block. It will follow the phase one development on the field, which is expected to produce first oil in 2020.

The final investment decision (FID) on Liza phase two was made after receiving regulatory approval from the Government of Guyana in May 2019.

Liza phase two is planned to be developed with more number of production wells than Liza phase one. It will also feature a separate floating production, storage and offloading (FPSO) facility.

The phase two is expected to produce up to 220,000 barrels of oil-equivalent per day (boed), starting from  2022.

Liza oil field discovery and development details

Liza oil field was discovered by the Liza-1 discovery well in May 2015. Liza phase two development plan is based on the drilling result of Liza-4 well, which encountered more than 197ft of high-quality oil-bearing sandstone reservoirs in the Liza prospect.

The proposed development concept for Liza two is similar to that of Liza phase one. It will involve six drill centers and 30 development wells, including 15 production, nine water injection, and six gas injection wells.

It will also include associated subsea equipment such as umbilical, risers, and flowlines, and a second floating, production, storage, and offloading vessel (FPSO) on the Liza field.

Expected to be brought on stream in 2022, Liza phase two, together with Liza phase one, will increase the total production capacity of the Liza oil field to 340,000boed.

Liza phase two FPSO details

To be moored at a water depth of 1,600m, the Liza-2 FPSO will have the capacity to produce 220,000boed.

It will also have the capacity to treat 400 million cubic feet of associated gas and inject 250,000 barrels of water a day.

The crude oil storage capacity of the FPSO will be two million barrels.

Contractors involved in Liza offshore oil field phase two

TechnipFMC was contracted for the subsea system of Liza phase two in in October 2018. The scope of the contract includes the design and supply of 30 enhanced vertical deep water trees and associated tooling, as well as eight manifolds and associated controls and tie-in equipment.

Ramboll US Corporation was awarded a $40m contract by Guyana’s Environmental Protection Agency (EPA), in May 2018, to review the environmental impact assessment (EIA) of the Liza phase two development.

SBM Offshore was awarded the front-end engineering and design (FEED) contract for the Liza-2 FPSO, in July 2018.

SBM Offshore will also be responsible for the construction, installation as well as lease and operation of the Liza-2 FPSO for a period of up to two years, following which the FPSO ownership and operation will be transferred to EEPGL.

Saipem was awarded the detailed engineering, procurement, construction, and installation contract for the risers, flowlines, and associated structures and jumpers for Liza phase two development, in August 2018.

Its contractual scope also includes the transportation and installation of umbilicals, manifolds, and associated foundations for the production as well as water and gas injection systems of Liza phase two.