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Guyana to account for 30% of Hess current output by 2022
Hess’ share in the lucrative Stabroek Block offshore Guyana is set to account for 30 percent of its global oil and gas output when Liza Phase Two comes on stream in 2022.
Chief Executive Officer, John Hess
Blocks Hess Corporation has stakes in, offshore Guyana
The numbers represent steep shifts for Guyana to the front of the portfolio of every oil company involved in the joint venture at the Stabroek Block, despite oil being discovered just a few years.
Just recently, Kaieteur News reported that Guyana could see itself accounting for 1M barrels of oil per day in Exxon’s portfolio by 2025, according to the company’s plans.
To put that into perspective, ExxonMobil reported that its global oil output for the second quarter of 2020 was 3.64M barrels of oil equivalent per day.
Less attention is often given to Exxon’s other partners on the Block. While Exxon has a 45 percent stake, Hess has 30 percent and CNOOC has 25 percent.
At peak capacity, the Liza Destiny Floating Production, Storage and Offloading (FPSO) vessel operating at Liza Phase One would produce 120,000 barrels of oil per day, while the Liza Unity, set to come on stream, by 2022, has a peak production capacity of 220,000 barrels per day.
Hess’ 30 percent stake in the Block would see it taking about 102,000 barrels per day from the two projects when they produce at peak.
This represents 30.5 percent of the company’s current output, recorded in its 2020 Q2 earnings call as 334,000 barrels of oil equivalent per day.
During its earnings call last month, Chief Executive Officer John Hess told analysts of Guyana’s position in its portfolio, not only of the quantity of oil but the low cost to produce it.
“In terms of preserving the long-term value of our assets,” Hess said, “our top priority is Guyana, an extraordinary world-class asset… The current estimate of gross discovered recoverable resources for the block stands at more than 8 billion barrels of oil equivalent, with multi-billion barrels of exploration potential remaining.”
Hess said that having Guyana on the company’s portfolio will provide long term resource growth across multiple phases of low cost developments, expected to drive industry-leading cash flow growth over the course of the decade.
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