Sun | Oct 24, 2021

Second oil ship begins voyage to Guyana

Published:Saturday | September 11, 2021 | 12:07 AM

The Liza Unity floating production storage and offloading vessel, Guyana’s second oil ship, has begun its voyage to Guyana, having departed the Keppel shipyard in Singapore, it was announced on Thursday.

The government, in a statement, welcomed the announcement of the Liza Unity FPSO voyage, which it said will complement the Liza Destiny FPSO currently producing approximately 120,000 barrels of oil per day, and which will see the production of approximately 330,000 barrels of oil per day in 2022.

The new vessel is expected to arrive in Guyana by November. Once it arrives at the Liza field in the Stabroek Block, it will be hooked up to the seabed, after which will be the installation of umbilicals and risers, allowing the next phase of operations to begin.

The Liza Unity FPSO has also been awarded the SUSTAIN-1 notation by ABS, the Classification Society. This means that the design and construction of the unit is assessed against and adheres to the requirements of the ABS Guide for Sustainability Notations, aligned with the applicable United Nations Sustainable Development Goals.

The Liza Unity is the world’s first FPSO to achieve such recognition for sustainability for its design, documentation and operational procedures. Examples of features recognised by the SUSTAIN-1 class notation include energy efficiency management, mitigation of ozone-depleting substances and management of hazardous materials throughout the life cycle.

“We are pleased to see that the Liza Unity FPSO is ready for the next phase and we look forward to cooperating closely with our client ExxonMobil to ensure that the start-up is a success,” said Managing Director of Floating Production Solutions, Olivier Icyk.

AFFORDABLE ENERGY

“We are also very proud to see Liza Unity obtaining the SUSTAIN-1 class notation, the world’s first FPSO to do so. At SBM Offshore we work closely with our clients and our supply chain towards the goal of reducing emissions from our products. This is an important step in our journey to deliver safe, sustainable and affordable energy from the oceans,” he said.

The Liza Unity FPSO is designed to produce approximately 220,000 barrels of oil per day, to have associated gas treatment capacity of 400 million cubic feet per day and water injection capacity of 250,000 barrels per day. The FPSO will be spread moored in water depth of about 1,600 metres and will be able to store around two million barrels of crude oil. There are a total of 19 topside modules.

Meanwhile, the Guyana has said it expects to deposit more than US$500 million into the Natural Resources Fund, NRF, by the end of this year.

AVERAGE REVENUE

Natural Resources Minister Vickram Bharrat said the country is also due to export a million barrels of oil in three weeks and another million before the end of the year, and that both exports will have an average revenue of US$70 million.

“As of right now, we have US$436 million in the Natural Resource Fund, that is, the proceeds or the revenue that our country would have, gained from the sale of its crude. We would have completed seven lifts,” he added.

Those proceeds he said came from the sale of seven million barrels of oil on the international market, as well as royalties.

“I’m happy to say to you, that your government, our government, has not spent a single dollar from this proceed; we have not spent a single cent from the Natural Resource Fund, so we have, intact, US$436 million in this account that belongs to Guyana and Guyanese,” he told a Regional Toshaos Meeting in Lethem Region Nine.

He added that no money would be spent from the fund unless there is parliamentary approval, as mandated by the Natural Resource Fund Act of 2019.

With the expected commissioning of Liza Unity, Guyana would be “producing 340,000 barrels of oil per day; by the second quarter of next year we will be producing that amount of oil”, Bharrat said.

A third vessel, called the Prosperity, is expected to add another 220,000 barrels of oil per day, putting Guyana in a position to produce 560,000 barrels of oil daily, he added.

“So that is why we need to ensure that when monies are taken from the Natural Resource Fund, that there is proper accountability and transparency and there is parliamentary oversight. And I say that because the opposition is part of the parliament, so they themselves can lend scrutiny to how we spend,” the natural resources minister said.

CMC