ExxonMobil negotiates with Govt & opposition to secure go-ahead for third oil field

Nov 14, 2019 News

…Hess CEO tells Miami conference

ExxonMobil and its partners are confident that they will secure the necessary ‘go ahead’ for development of a third Oil Field in the Stabroek Block—Payara—from whichever government is elected at the upcoming General Elections.
This is certain, since they are already talking with both sides of the political aisle, to ensure the outcome.
The disclosure was made, yesterday, by Hess Corporation’s Chief Executive Officer (CEO), John Hess, during ‘remarks and dialogue’ at the 2019 Global Energy Conference, in Florida. There he provided investors with an update on its Guyana operations.
Hess holds a 40 percent interest in the Stabroek Block which is majority controlled by ExxonMobil; CNOOC-Nexen are the minority partners in the Joint Venture (JV).
Speaking at the Energy Conference in Miami, Florida, the Hess ‘Boss’ dismissed the likelihood of any adverse effect on its operations and project timelines, despite the fact that the Guyana Department of Energy (DoE) has put on hold, its Field Development Plan (FDP) for the planned third oil field in the Stabroek Block –Payara.
According to Hess, however, “Exxon (Mobil) is working very closely with the current government and also the opposition government, to make sure that we are all aligned, so that when either the current president gets re-elected in Guyana on March 2 or a new president is elected, ah you know, the technical work will be done so that we can move forward rather expeditiously with getting official approval with the investment for the Payara.”
He dismissed the notion that the company was running ahead of itself in terms of investment and productions schedules with the award of an Engineering and Design Contract to SBM Offshore for a third Floating, Production Storage and Offloading Vessel, in the absence of a Field Investment Decision (FID).
The FID is pending the necessary approval by the DoE.
Hess said that the joint venture partners have essentially adopted a ‘design one, build many’ approach to its operation and that the first ship informs the second.
He explained that, “the Payara ship which we have already started to spend money on and the government, once a national elections gets in business after March 2, we are pretty confident that Payara will be authorised.”
According to the Hess ‘Boss’, “We already have three ships on the way,” and that the Hammerhead discovery has already been found to be commercially viable.
In downplaying the move by the Guyanese authorities on the third field, Hess disclosed further that plans for a fourth vessel to be used at the Hammerhead discovery are already at an advanced stage.
In fact, Hess has projected as many as seven FPSO’s operating offshore Guyana in the Stabroek Block.

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