Hess Corporation’s CEO (CEO), John Hess, a 30 percent partner in Guyana’s world-class Stabroek offshore oil block, says the company continues to see billions more barrels of future exploration potential remaining, apart from the nine billion barrels that already exist. discover.
In a recent comment in Hess Corporation’s Fourth Quarter 2020 Conference Call, Hess stated that “Guyana becomes a significant cash machine as multiple phases of low-cost oil developments come online, which we believe will drive our company’s cost recovery less than US $ 40 per Brent barrel and provide industry-leading cash flow growth over the decade. ”
“Our strategy has been – and continues to be – to grow our resource base, have a low supply cost and maintain cash flow growth … our differentiated portfolio is balanced between short and long cycle assets, with our focus at best rock for the best returns … Bakken Gulf, deep water Mexico and Southeast Asia are our cash machines and Guyana is our growth engine, ”declared the CEO.
Highlighting the long-term preservation of the Hess and Guyana assets – with its low supply cost and industry-leading financial returns, Hess emphasized that this remains the company’s top priority.
On the Stabroek Block, where Hess has a 30 percent interest and ExxonMobil is the operator, 2020 was reported to be another outstanding year with three oil discoveries during the year – at Uaru, Redtail-1 and Yellowtail-2 by bring complete discoveries on the Stabroek Block to 18.
“The estimate of gross recoverable resources found on the block has been increased to around nine billion barrels of oil equivalent, and we continue to see barrels worth millions of millions of future exploration potential remaining,” reiterated Hess CEO.
The other partners on the Stabroek Block are ExxonMobil, 45 percent and CNOOC in China, 25 percent.
Hess reported that production from Liza’s Phase 1 reached its full capacity of 120,000 gross barrels of oil per day in December.
Liza’s Phase 2 development is said to be on track to deliver the first oil in early 2022, with a capacity of 220,000 gross barrels of oil per day.
Hess cited sanctioning the third oil development on the Stabroek Block in September at Payara Field as another key milestone in 2020. Payara will have a capacity of 220,000 gross barrels of oil per day and is expected to deliver the first oil in 2024.
“Our three approved oil developments on the Stabroek Block have recovered Brent oil prices of between US $ 25 and US $ 35 a barrel – world-class by any measure. Front-end engineering and design work for a fourth development in the Yellowtail area is underway and we hope to submit the development plan to Government for approval before the end of the year, ”Hess told reporters.
The company also continues to see the potential for at least five Floating Production, Storage and Unloading (FPSO) vessels to produce more than 750,000 gross barrels of oil per day by 2026 – and a longer term of up to 10 FPSO develop the current recoverable found. resource base.
Hess will continue to invest in an active exploration and appraisal program in Guyana in 2021, with 12 to 15 wells planned for the block.
Recently, a Hassa-1 exploration found about 50 feet of oil reservoir in deeper geological stages. Although the well did not find oil in the shallow target areas, the results of the Hassa well confirm a functioning petroleum system and provide valuable information about the future exploration prospects for this part of the block. (Guyana Petroleum Concentration)