Crude oil giant Exxon Mobil will invest 4.4 billion USD to develop a part of the Lisa oil field off the coast of Guyana by approving a mega-project at a time when the oil industry is obsessed with cheaper shale oil. The Exxon Mobil’s decision shows that oil companies remain interested in major projects, especially offshore, even in the austerity era after two years of low oil prices.
Exxon partners in the field in Guyana with Hess Corp and CNOOC. Lisa oil field is the fifth deepwater project to win approval this year. Earlier, BP and Reliance Industries said they would invest 6 billion USD to develop natural gas reserves along the Indian coast.
Exxon, which spent nearly 7 billion USD earlier this year to double its share in a Perian shale formation in the US, said the Guyana project was partially approved due to low production costs.
“We are thrilled by the incredible potential of the Lisa field and the acceleration of the first production by step-by-step development in this environment at lower prices”, said Liam Mallon, head of Exxon.
The first stage of the field development project should bring a total of 450 million barrels of oil and about 120,000 barrels per day, when it starts work in 2020. The Lisa Field is about 100 nautical miles from the coast of Guyana. Exxon plans 17 wells as part of the first phase of the project, and a second phase is possible in the future.
New York-based Hess said it expects its share in project costs to be about 955 million USD.