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Guyana is the golden ticket to fast track oil production – Hess boss tells shareholders
Kaieteur News – Guyana’s Stabroek Block has proven to be the golden ticket for Hess Corporation, as the company recently reported that the offshore asset is projected to propel its profit margin with a stunning annual growth rate of over 10%.
The Chief Executive Officer (CEO), John Hess, unveiled the massive potential of the Stabroek Block during the company’s 2023 second quarter earnings call, revealing plans to tap into an astonishing 11 billion barrels of oil equivalent resources.
Additionally, the licence awarded to Stabroek Block operator, ExxonMobil Corporation, to drill 35 new wells by 2028 is set to further bolster their position.
The strategic partnership with ExxonMobil Corporation, along with other key stakeholders like CNOOC Petroleum Limited Guyana, has been instrumental in realizing this remarkable achievement. With more than 30 discoveries made on the Stabroek Block, the potential for exploration is vast, setting the stage for a production capacity of over 1.2 million barrels of oil per day from six floating production, storage, and offloading vessels (FPSOs) by 2027.
Importantly, Guyana remains the lynchpin of Hess’s ambitious growth strategy, and the projected development of projects like Payara, Yellowtail, and Uaru are expected lead to a combined production of 500,000 barrels per day by 2026. The low cost of supply, particularly in Guyana with breakevens ranging from US$25 to US$35 per barrel Brent, further solidifies Hess’s strong position in the market.
Map showing the Stabroek block offshore Guyana
Despite a slight dip in profits for the second quarter of 2023, Hess’s assets in Guyana and the Bakken, USA proved to be a lifesaver, delivering higher production volumes and helping to cushion the impact. Net production from the Stabroek Block, including the Liza Destiny and Liza Unity FPSOs, soared to impressive levels, and the outlook for 2023 is promising.
With a clear focus on responsible production, Hess said it is set to continue its successful trajectory. Investments in Guyana and the Bakken are also bound to pay off handsomely, as the company strives to deliver leading cash flow growth and exceptional financial returns for their shareholders, all while contributing to global energy needs.
Since 2015, Guyana’s Stabroek Block has indeed emerged as a game-changer for Hess Corporation, catapulting its profit margin in record time and setting the stage for impressive annual growth. As the partnership with ExxonMobil Corporation and other key stakeholders continues to bear fruit, the massive potential of 11 billion barrels of oil equivalent resources has been unlocked, firmly establishing Guyana as the key to Hess’s robust performance strategy. With exciting projects in the pipeline, including the Payara, Yellowtail, and Uaru, Guyana’s contribution to the company’s success story is set to remain at the forefront of its achievements.
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