Latest update February 8th, 2025 5:56 AM
Latest News
- Soaring gold price entices Canadian company to renew permits in Guyana
- Terrence Campbell accuses Govt. of weaponizing Police Force after calls for accountability with oil revenues
- China slams US as Panama quits Belt and Road Initiative
- Guyana extradites fugitive to Canada
- AFC Leader Nigel Hughes welcomes any investigation into lands he acquired
Hess to make approximately US$1.4B off 24 lifts from Guyana this year
Kaieteur News – If calculated at US$60 a barrel, US oil conglomerate, Hess Corporation is poised to make approximately US$1.4B from guaranteed lifts from the Liza Phase One and Liza Phase Two Projects this year.
The Liza Unity, Guyana’s second oil ship which commences production this quarter
During the company’s 2021 fourth quarter earnings call yesterday, Hess’ Chief Financial Officer (CFO), John Rielly said the oil explorer expects to have three liftings from Guyana in the first quarter. Two lifts will come from the Liza Destiny which is pumping oil at the Liza Phase One Project and the third will come from the Liza Unity vessel which is poised to start producing oil at the Liza Phase Two project at the end of March.
In the second quarter, Rielly said Hess expects a total of five liftings. After the Liza Unity reaches full production, which is currently projected for the third quarter of this year, he said the company expects to have eight liftings per quarter in Guyana from these two FPSOs.
Therefore, for the full year of 2022, Rielly said, “We expect 24 liftings in Guyana.” If oil prices at each time of lift and sale is above US$60 Brent, Hess is expected to rake in over US$2B in earnings comfortably.
Post the startup of the Liza Phase 2 development, he was keen to note that the company intends to pay off the remaining US$500 million on its term loan and increase our dividend. He said, “With our strong cash and liquidity positions, and our industry leading cash flow growth, we are well positioned to significantly improve our credit metrics and increase cash returns to our shareholders in the coming years.”
The CFO concluded, “We remain committed to returning the majority of our increasing free cash flow to shareholders through further dividend increases and share repurchases.”
Once installed, the Liza Unity is poised to produce up to 220,000 barrels of oil per day which is double the current production of the Liza Destiny oil ship. Kaieteur News had previously reported that Dutch conglomerate, SBM Offshore, was awarded the front end engineering and design (FEED) contract for the FPSO in July 2018. The FPSO design is based on SBM Offshore’s Fast4Ward, which incorporates a new build, multipurpose hull combined with several standardised topsides modules.
The FPSO in early September had sailed from Singapore to Guyana. The vessel was there for the topside integration phase and is expected to begin production in early 2022. Once production kicks off, Liza Phase Two is expected to develop approximately 600 million barrels of oil. The project is set to cost Guyana approximately US$6 billion, and includes a lease capitalisation cost of approximately US$1.6 billion, for the Liza Unity FPSO vessel, which will be moored in water depth of about 1,600 meters and will be able to store approximately two million barrels of crude oil.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Due diligence on investments must become a priority
Peeping Tom… Kaieteur News- In 1985, the Forbes Burnham government looking for economic salvation, entered into a memorandum... more
OAS Secretary General Election and renewed OAS Consensus
Antiguan Barbudan Ambassador to the United States, Sir Ronald Sanders By Sir Ronald Sanders Kaieteur News- The upcoming election... more
Weekend Cartoon
