For 2021, the Stabroek Block will see billions of dollars being invested by its licensed partners to ensure the development of the oil discovered to date which totals approximately nine billion barrels of equivalent resources. In the case of Hess Corporation, this American oil explorer is expected to plug over US$780 into the Stabroek Block.
According to the company’s financial statements, US$25 million has been put aside for the Liza Phase One development where production reached a nameplate capacity of 120,000 gross barrels of oil per day in December 2020. US$450 million was budgeted for the Liza Phase 2 development with a capacity of up to 220,000 gross barrels of oil per day, with the first production expected in early 2022. Further to this, US$235 million was allocated for the Payara development which will have a capacity of up to 220,000 gross barrels of oil per day, with the first production expected in 2024.
Hess noted too that US$70 million has been budgeted primarily for front-end engineering and design work for future development phases on the Stabroek Block.
The company said that millions more would be invested in Guyana as US$450 million was budgeted to drill 12-15 exploration and appraisal wells on the Stabroek Block in Guyana. (It should be noted however that funds are also included for well planning on Block 42 in Suriname where Hess has a 33.3% working interest.)
The Stabroek Block, located approximately 120 miles offshore Guyana, is 6.6 million acres (26,800 square kilometers). The block is equivalent in size to 1,150 Gulf of Mexico blocks and contains multiple prospects and play types representing additional multi-billion barrel unrisked exploration potential. ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited is the operator of the concession given its 45 percent working interest.