US-based oil and gas company ExxonMobil has commenced production from the Liza Phase 2 development on the Stabroek block, offshore Guyana.

The production has been started through the Liza Unity floating production, storage and offloading (FPSO) vessel, which is expected to reach its target of 220,000 barrels of oil later this year.

The vessel, which was constructed in shipyards in China and Singapore, reached Guyana in October last year. Moored in a water depth of about 1,650m, it has a capacity to store nearly 2 million barrels of crude oil.

Utilising the Liza Destiny FPSO, the Liza Phase 1 development on the Stabroek block started production in December 2019.

The Stabroek block is estimated to contain recoverable resources of more than 10 billion oil-equivalent barrels, with a potential to support up to 10 projects.

ExxonMobil upstream oil and gas president Liam Mallon said: “We are collaborating closely with the government and people of Guyana to develop this world-class resource responsibly, helping to meet the world’s energy needs and delivering enhanced value for all stakeholders at a record pace and well ahead of the industry average.

“With unparalleled project execution, we now have two production facilities operating offshore Guyana.”

Esso Exploration and Production Guyana, an affiliate of ExxonMobil, is the operator of the block with a 45% stake, while Hess Guyana Exploration and CNOOC Petroleum Guyana are the partners owing 30% and 25% stakes, respectively.

According to ExxonMobil, four FPSOs with a capacity of more than 800,000 barrels per day are expected to be in operation on the Stabroek block by year-end 2025.

The third project in the block is Payara, which is anticipated to produce nearly 220,000 barrels of oil per day using the Prosperity FPSO vessel.

The Yellowtail project is the fourth project, for which the development plan and application for environmental authorization has been submitted for government and regulatory approval.

With a production capacity of nearly 250,000 gross barrels of oil per day, Yellowtail is expected to come online in 2025.

Hess CEO John Hess said: “We are proud to be a partner in the successful development of this world-class oil resource and congratulate ExxonMobil as operator for outstanding project execution.

“We look forward to continuing to work with the Government and the people of Guyana to realise the remarkable potential of the Stabroek Block for the benefit for all stakeholders.

“The world will need these low-cost oil resources to meet future energy demand and help ensure an affordable, just and secure energy transition.”