ExxonMobil to Proceed with Liza Phase 2 Development Offshore Guyana

  • Liza Phase 2 received government and regulatory approvals and remains
    on track for mid-2022, producing up to 220,000 barrels of oil per day
  • Phase 1 on schedule for first oil by first quarter of 2020
  • Guyanese direct and indirect workforce more than doubled in 2018 to
    more than 1,000

said today it has funded the Liza Phase 2 development offshore Guyana
after it received government and regulatory approvals. Liza Phase 2 will
produce up to 220,000 barrels of oil per day and further capitalize on
the significant development potential of the Stabroek Block, where
ExxonMobil estimates producing more than 750,000 barrels of oil per day
by 2025.

A total of six drill centers are planned as well as approximately 30
wells, including 15 production, nine water injection and six gas
injection wells. Phase 2 startup is expected in mid-2022 and will
develop approximately 600 million barrels of oil. Liza Phase 2 is
expected to cost $6 billion, including a lease capitalization cost of
approximately $1.6 billion, for the Liza Unity floating production,
storage and offloading (FPSO) vessel.

“With the government of Guyana and our partners, ExxonMobil is bringing
industry-leading upstream capabilities to build upon Phase 1 and further
develop the shared value of Guyana’s resources,” said Liam Mallon,
president of ExxonMobil Upstream Oil & Gas Company. “We are actively
pursuing significant development potential from numerous discoveries in
the Stabroek Block.”

Liza Phase 1 remains on track to achieve first oil by the first quarter
of 2020. It will produce up to 120,000 barrels of oil per day at peak
rates utilizing the Liza Destiny FPSO, which is expected to arrive
offshore Guyana in the third quarter of 2019.

Pending government and regulatory approvals, a final investment decision
is expected later this year for a third phase of development, Payara,
which is expected to produce between 180,000 and 220,000 barrels per day
with startup as early as 2023. ExxonMobil is evaluating additional
development potential in other areas of the Stabroek Block, including at
the Turbot area and Hammerhead.

By the end of 2019 ExxonMobil will have four drillships operating
offshore Guyana. Following well completion activities at the recently
announced Yellowtail discovery, the Noble Tom Madden will move to the
Hammerhead-2 well. The Stena Carron is completing a well test at the
Longtail-1 discovery, and will then move to the Hammerhead-3 well.

Later in 2019, the Stena Carron will drill a second well at the Ranger
discovery. The Noble Bob Douglas drillship is completing development
drilling operations for Liza Phase 1. ExxonMobil will add another
exploration drillship, the Noble Don Taylor, in the fourth quarter of

As the projects proceed, the partners’ investment in the Guyanese
economy continues to increase. The number of Guyanese nationals
supporting project activities more than doubled in 2018 to more than
1,000. ExxonMobil and its co-venturers spent nearly $60 million with
more than 500 Guyanese vendors in 2018. More than 1,500 Guyanese
companies are registered with the Centre for Local Business Development,
which was founded by ExxonMobil and its co-venturers in 2017 with the
mission of supporting local businesses to become globally competitive.

The Stabroek Block is 6.6 million acres, or 26,800 square kilometers.
Current discovered recoverable resources are estimated at more than 5.5
billion barrels of oil equivalent. The 13 discoveries on the block to
date have established the potential for at least five FPSO vessels
producing more than 750,000 barrels of oil per day by 2025. ExxonMobil
affiliate Esso Exploration and Production Guyana Limited is operator and
holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration
Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited, a
wholly-owned subsidiary of CNOOC Limited, holds 25 percent interest.

Cautionary Note:

Statements that reference future events or conditions in this press
release are forward-looking statements. Actual future results, including
project plans, costs, and schedules, production rates, and resource
recoveries may differ significantly from the forecasts, depending on
changes in long-term oil or gas prices and other market or economic
factors that affect the petroleum industry; the timely completion of
development programs and the outcome of future exploration programs;
reservoir performance; unexpected technical difficulties or other
technical or operating factors; the actions of governmental authorities
or regulatory agencies, including obtaining necessary permits and
approvals; the outcome of commercial negotiations; and other factors
listed under the heading “Factors Affecting Future Results” on the
Investor page at the ExxonMobil website at www.exxonmobil.com
and in Item 1A of ExxonMobil’s most recent Form 10-K. References to
recoverable resources and other quantities of oil or gas in this release
include volumes that are not yet classified as proved reserves under SEC
definitions, but that are expected to be ultimately recoverable. The
term “project” in this release may refer to a variety of different
activities and does not necessarily have the same meaning as in any
government payment transparency reports.

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