Exxon’s partner boasts of receiving US$4B annually starting from next year

Nov 21, 2021 News

-calls Stabroek Block “the mother-load”

Kaieteur News – While it may have stakes in other blocks in the Guyana-Suriname basin, Hess Corporation says its top priority will remain the oil rich Stabroek Block since it is “the mother-load” of its portfolio. Specifically making this comment was Hess’ Chief Operating Officer (COO), Greg Hill. He was at the time participating in Bank of America’s Global Energy Conference.Participating in the virtual conference as well was Chief Executive Officer (CEO), John Hess, who boasted about the revenue making potential of the Stabroek Block projects. He said, “The Bakken, Deepwater Gulf of Mexico and Malaysia serve as our cash engine, while Guyana serves as our growth engine. With the start-up of Liza Phase Two early next year, Guyana also becomes a cash engine and at that time, all of our major assets will be free cash flow positive.”
With a line of sight of up to 10 Floating, Production, Storage and Offloading (FPSOs) in Guyana to develop approximately 10 billion barrels of oil equivalent resources as well as its robust inventory of high return drilling locations in the Bakken, USA, the CEO said the company’s ability to deliver high return resource growth is, therefore “unparalleled.”
Expounding further he said, “When Liza Two comes on, we will steadily move down the cost curve. Our Guyana developments have a Brent breakeven price between US$25 and US$35 per barrel. And as our Bakken production in the USA goes up to 200,000 barrels of oil equivalent per day in the next several years we will be able to go down the cost curve.”
The Hess boss added, “By 2026, we predict that our cash unit cost will go down by 25 percent versus this year to approximately US$9 per barrel of oil equivalent resources and that our portfolio will achieve a Brent breakeven price of approximately US$45 per barrel.”
Further to this, Hess said his company is clearly positioned to deliver industry leading cash flow growth. In this regard, he said between 2021 and 2026, the company’s cash flow is forecast to increase by 25 percent annually. He said this is more than two times as fast as its production growth. At a price of US$65 per barrel Brent, Hess said this should result in annual free cash flow

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