According to a release by Exxon, it is reducing its 2020 global capital spending by 30 percent and lowering cash operating expenses by 15 percent in response to low commodity prices resulting from oversupply and demand weakness from the COVID-19 pandemic.
The company advised that Guyana remains an integral part of ExxonMobil’s long-term growth plans.
The release states that current operations onboard the Liza Destiny production vessel are unaffected, and startup of the second phase of field development remains on target for 2022, with the Liza Unity production vessel currently under construction.
The company however has stated that it awaits government approval to proceed with a third production vessel for the Payara development. As a result, some 2020 activities are now being deferred, creating a potential delay in production startup of six to 12 months.
According to Exxon, the Payara development plan includes a floating production, storage and offloading (FPSO) vessel, named Prosperity; it is expected to produce 220,000 barrels per day. The Payara development is similar to Liza phase 1 and 2, Payara and will have up to 45 wells, including production wells, water injection wells and gas injection wells. The Payara development startup was initially expected by 2023.