Latest update December 17th, 2024 3:32 AM
With current speed of discoveries, Guyana will need more than 10 ships to take off resources – Hess Corporation
Kaieteur News – Given the current speed with which ExxonMobil Corporation is making discoveries offshore Guyana, the oil giant may very well need more than 10 floating, production, storage and offloading (FPSO) to off-take the resources.
This was revealed by Hess Corporation’s Chief Executive Officer (CEO), John Hess at a recent energy conference. While there, Hess was reminded that the Stabroek Block partners originally intended to have 10 ships to produce and store the 11 billion barrels of oil equivalent resources for sale. With a line of sight for six projects, this only accounts for 4.9 billion barrels of oil equivalent resources. It therefore leaves 6.1 billion barrels of resources to be used by the remaining four ships envisioned.
John Hess, Chief Executive Officer (CEO) of Hess Corporation
Even if the partners pursue the construction of four massive vessels to each offtake 1.5 billion barrels of oil each, that still leaves for consideration, the 10 discoveries made by Exxon and its partners last year. Those finds have not been defined yet. Industry stakeholders have assumed that these discoveries hold over one billion barrels of oil. This alone will require a separate vessel or two.
Additionally, ExxonMobil has approached the Environmental Protection Agency (EPA) to advance a 35 multi-well programme in the Stabroek Block. This campaign could no doubt unlock more resources which may need their own vessels for storage and production too.
Hess at the conference was keen to note that the partners do envision there will be a need for more ships as the resource grows. That aside, he said they are moving along with accelerated production targets for the Liza Destiny and the Liza Unity vessels which are producing in the range of 400,000 barrels of oil per day (bps). Both ships are also operating beyond their nameplate capacity. Liza Destiny’s nameplate capacity is 120,000 bpd but is now in the 150,000 bpd range while Liza Unity is producing just above its 220,000 bpd range. The third producing vessel, Prosperity, which will operate at the Payara field has left the shipyard and is on its way to Guyana. It would be hooked up and producing 220,000 bpd by the third quarter.
Hess also said that the partners’ Yellowtail Project is ahead of schedule in terms of construction works and is on stream for start-up in 2025. The CEO also noted that the company has two other projects in the pipeline, Uaru and Whiptail, the former of which is awaiting government approval.
“As we do more appraisal, we will be able to define the seventh ship which can be underpinned by our new discoveries or the Fangtooth-discovery. As we drill more next year and this year, we will have more definition for eight, nine and 10th ships and we will see where it goes from there,” he concluded.
Guyana’s Stabroek Block is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the operator and holds 45% interest in the Block. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest.
The partners are also engaged in discussions to relinquish 20 percent of the acreage by 2024.
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