Hess Corporation told industry stakeholders today that its net loss for the fourth quarter of 2020 stands at US$97 million, or US$0.32 per common share, compared with a net loss of US$222 million, or US$0.73 per common share, in the fourth quarter of 2019.
In the area of exploration and production losses during the period under review, the American oil conglomerate said this was US$39 million in the fourth quarter of 2020, compared with a net loss of US$64 million in the fourth quarter of 2019.
Turning its attention to the Stabroek Block offshore Guyana where it has a 30 percent stake, Hess said that its net production from the Liza Field, which commenced in December 2019, averaged 26,000 barrels of oil per day (bpod) in the fourth quarter of 2020. It explained that the reduced take was due to the fact that the operator, Esso Exploration and Production Guyana Limited, was only able to complete the commissioning of the natural gas injection system allowing the Liza Destiny floating production, storage and offloading vessel (FPSO) to reach its nameplate capacity of 120,000 gross bopd in December last.
It was keen to note nonetheless that Phase 2 of the Liza Field development, which will utilize the Liza Unity FPSO with an expected capacity of 220,000 gross bopd, remains on target to achieve first oil by early 2022. As for the Payara development that was sanctioned in September 2020 and will utilize the Prosperity FPSO with an expected capacity of 220,000 gross bopd, this is still on schedule for first oil in 2024.
As for the Kaieteur Block where Hess holds a 15 percent stake, it said that the operator, Esso Exploration and Production Guyana Limited, completed drilling of the Tanager-1 exploration well, which did not encounter commercial quantities of hydrocarbons on a stand-alone basis. It noted however that fourth-quarter results include a charge of US$14 million in exploration expense for well costs incurred.
After drilling the Tanager-1 well, this news agency understands that the Stena Carron drillship completed appraisal work at the Redtail-1 well before moving to the Canje Block, offshore Guyana. Following the drilling campaign for the Hassa-1 well on the Stabroek Block, the company’s financial statements noted that the Noble Don Taylor drillship began development drilling at Liza Phase 2. As for the Noble Bob Douglas and the Noble Tom Madden drillships, they are currently drilling and completing Liza Phase 2 development wells.