Latest update January 8th, 2025 4:30 AM
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- ‘Our Stabroek Block estimate is higher than Exxon’s 11B barrels figure’ – Hess CEO
- Exxon to focus on exploring and appraising more of Stabroek Block before licence expires in 2027 – Routledge
- ‘All hell will break out’ if Gaza hostages aren’t released’—Trump warns
- Chinese company sitting on US$16B worth of gold at Guyana’s Aurora Gold Mine
- Guyana records 60% increase in workplace deaths in 2024 – Labour Minister
‘Our Stabroek Block estimate is higher than Exxon’s 11B barrels figure’ – Hess CEO
Kaieteur News- Hess Corporation’s Chief Executive Officer (CEO), John Hess, has disclosed that his company’s estimate of discovered resources in Guyana’s Stabroek Block exceeds the less-than-11-billion-barrels-of-oil-equivalent figure shared by the operator of the block, ExxonMobil Guyana Limited.
The Stabroek Block, renowned for its vast oil potential, has been the subject of global attention since oil production commenced five years ago. ExxonMobil’s President, Alistair Routledge, stated that the company’s estimate remains below 11 billion barrels of oil equivalent, despite eight new discoveries in the block since the previous update in 2022.
Hess Corporation’s Chief Executive Officer, John Hess
However, at the Goldman Sachs Research: Energy, CleanTech & Utilities Conference on Tuesday, Hess said, “Yeah, the operator, and we’ve had talks with Exxon about this as operator, the very conservative, they haven’t updated the 11 billion barrels equivalent, greater than 11 billion barrels equivalent of discovered resource. Our number is higher.”
In August 2024, Guyana’s Minister of Natural Resources, Vickram Bharrat, announced that the Stabroek Block’s resource estimate had increased by 600 million barrels to 11.6 billion barrels of oil equivalent. “We have had a minimal increase in resources. I think we have moved to 11.6 billion now,” Bharrat stated.
However, Routledge during ExxonMobil Guyana’s October 2024 press conference, noting that estimates can vary depending on the methodology and assumptions used.
This newspaper had asked him to share how many of the eight discoveries were appraised for the company to arrive at the new resource estimate of 11.6 billion barrels. To this end, he explained, “The government released a number of 11.6B oil equivalent barrels, ExxonMobil’s estimate is lower than that number…our number remains a little under 11 billion oil equivalent barrels.”
Furthermore, he noted that the company is obligated to make such reports to the US Securities and Exchange Commission, making the point that Exxon was not keeping the figures away.
Meanwhile, in explaining the variation between Exxon’s figures compared to the reserves announced by government, Routledge noted that the state conducts independent studies, although it is supplied with data by the company.
ExxonMobil’s President, Alistair Routledge
“They also do independent studies (and) verifications with other consultants and the work that they do themselves and the GGMC and Ministry of Natural Resources so it’s quite normal to have a slightly different view of the number,” he reasoned.
Exxon Guyana’s President also stressed the importance of focusing on translating those reserves to development. “We can have a wish list of estimated ultimate recovery but what’s material to the country is ‘are we moving it into sanctioned projects’ with finance, with a development plan and as we’ve talked about before I think we are around the 5B oil equivalent barrels that we’ve now moved successfully in the six projects into that category.”
Notably, the third Stabroek Block partner, China National Offshore Oil Corporation (CNOOC), had revealed that one of the eight discoveries – Lancetfish – averaged 100 million tons, translating to an estimated 746 million barrels of oil. It was also later announced by CNOOC that yet another discovery- Bluefin- had over 100 million tons of oil and gas.
CNOOC has 25% shares in the Stabroek Block; Hess Guyana Exploration Ltd. holds 30% interest while ExxonMobil, the operator of the Stabroek Block, holds a 45% interest.
(‘Our Stabroek Block estimate is higher than Exxon’s 11B barrels figure’ – Hess CEO)
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