-Hess Corporation

The Yellowtail well which marked ExxonMobil’s 13th discovery in April last,  along with further evaluation of previous discoveries, has now pushed the recoverable oil reserves for the Stabroek Block, well beyond six billion barrels. This was disclosed recently by Hess Corporation in its latest filing to the Securities Exchange Commission (SEC). 

Hess recalled that the Yellowtail-1 well encountered approximately 292 feet of high-quality oil-bearing sandstone reservoir and is located approximately 6 miles northwest of the Tilapia discovery. As the fifth discovery in the greater Turbot area, Hess said it underpins another potential major development hub.

It also stated that the growing resource base further underpins the potential for at least five FPSOs producing more than 750,000 gross barrels of oil per day(bopd) by 2025.

The 30 percent interest holder in the Stabroek Block also outlined other developments too. In this regard, it was noted that the second phase of development at the Liza Field was sanctioned by the partners following regulatory approval from the government of Guyana. Liza Phase Two it said, will utilize the Liza Unity FPSO, which will have the capacity to produce up to 220,000 gross bopd. 

Hess stated that six drill centers are planned with a total of 30 wells, including 15 production wells, nine water injection wells and six gas injection wells. It said that first oil is expected by mid-2022. 

Further to this, the American conglomerate noted that the development is expected to have a gross capital cost of approximately $6 billion, including a lease capitalization cost of approximately $1.6 billion for the FPSO, and will develop approximately 600 million barrels of oil. Excluding pre-sanction and lease costs, the Corporation’s net share of development costs is forecast to be approximately $1.6 billion, of which $210 million is included in our 2019 capital and exploratory budget. 

It noted that Liza Phase One remains on track to achieve first oil by the first quarter of 2020. It will produce up to 120,000 gross bopd at peak rates utilizing the Liza Destiny FPSO, which is expected to arrive offshore Guyana in September 2019. 

Additionally, Hess noted that planning is underway for a third phase of development at the Payara Field, which is expected to produce between 180,000 and 220,000 gross bopd with first oil as early as 2023.


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