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.

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