Management Address
January 2020
During the fourth quarter, the Liza Phase 1 project achieved first oil, making history as the first oil and gas development in Guyana. The project was onstream less than five years from discovery, achieving the vision of “One Team Delivering – Onstream in 2019”. This project is the “Foundation for the Future” for deep water developments and the beginning of a new industry for Guyana. During the fourth quarter, the Liza Phase 2 and Payara projects both achieved key, strategic milestones and continue to progress well.
There were many examples of One Team behaviors during execution where team members put individual interests aside to arrive at the best decision for the project as a whole – even amid challenging weather conditions and SIMOPS. Collaboration and flexibility amongst ExxonMobil, SBM, TechnipFMC and Saipem allowed the team to align in support of critical path activities in an effort to ensure first oil in 2019. Congratulations to everyone who contributed to the Liza Phase 1 project, and thank you for your relentless focus on our Nobody Gets Hurt vision and your commitment to working as One Team. Our collaboration and shared vision resulted in a successful outcome on many levels.
For Liza Phase 2, the FPSO team achieved a key milestone during the fourth quarter with receipt of the MPF’s final class certification and the sail away of the vessel from Shanghai to Singapore. The Liza Phase 2 Subsea team also achieved key milestones including delivery of the first two subsea trees and three tubing heads to the Trinidad shorebase. During the period, the Liza Phase 2 engineering contractors successfully collaborated to achieve interface milestones including the completion and delivery of all 14 riser hangoff receptacles to the SBM shipyard in Singapore – this is an excellent example of the One Team approach and building on the foundations established by the Liza Phase 1 Team!
For Payara, all major contracts have been awarded and project teams were mobilized. We continue to see the benefits from transferring lessons learned from the Liza Phase 1 and Liza Phase 2 projects. For example, the Payara FPSO, to be named Prosperity, will utilize a design that largely replicates the design of the Unity FPSO from the Liza Phase 2 project. This replication results in significant efficiencies during the engineering and procurement phases. The team recently completed the HAZOP for the Payara FPSO in about half the time required for Liza Phase 2 – demonstrating the benefits of the “Design One, Build Many” model!
Local content development continues to be a key focus for success of Guyana Projects and our motto is “locally developed, globally competitive.” More than 1,700 of the ExxonMobil employees, contractors and subcontractors supporting the activities in Guyana are Guyanese, representing more than 50 percent of the total workforce. This number is expected to continue to grow as additional operations progress. Additionally, ExxonMobil hosted and/or participated in a number of activities during the fourth quarter to facilitate local content development in Guyana: a Geoscience Short Course at the University of Guyana, the 2nd annual GIPEX Convention, and a STEM (Science, Technology, Engineering and Math) conference for students. All of these activities provide ExxonMobil the opportunity to engage with the community and promote local content development.
The full Guyana projects team continues to adhere to the Nobody Gets Hurt vision even when activities are progressing at a rapid pace. As always, we want to thank everyone for keeping these goals top of mind, even as activities ramp up. Additionally, as the Liza Phase 1 project transitions into the Production phase, it is important to note that this system now contains hydrocarbons. There are additional safety considerations when performing activities near or on a live operating system so please be mindful of this transition and continue to remain diligent. No project can be a success without teamwork and safety, so your efforts in these areas are a vital component of your work each and every day.