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Company targeting December for first oil from Guyana


CMC

Company targeting December for first oil from Guyana

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GEORGETOWN – The United States-based Hess Corporation Wednesday said it is now targeting December for first oil from the Liza-1 development in Guyana.

Oil production was initially set to begin in the first quarter of 2020, but according to the Hess Corporation chief executive officer, John Hess, “In September, we announced our 14th discovery in the Stabroek Block at Tripletail, offshore Guyana and are now targeting December for first oil from the Liza-1 development.”

The Stabroek Block is operated by ExxonMobil with a 45 per cent interest while Hess and CNOOC Petroleum have 30 per cent and 25 per cent interest, respectively.

Hess, which reported a net loss of US$205 million in the third quarter of 2019, compared with a net loss of US$42 million, said the Liza Phase 1 development is now targeted to commence production in December of this year and will produce up to 120 000 gross barrels of oil per day (bopd) utilising the Liza Destiny FPSO, which arrived in Guyana on August 29 this year.

The Liza Phase 2 development was sanctioned in May 2019 and will use the Liza Unity FPSO to produce up to 220 000 gross bopd, with first oil expected by mid-2022.

“Pending government approvals, a third development, Payara, is expected to produce up to 220 000 bopd with start-up in 2023,” the company said.

Hess said also that exploration and development drilling activities are continuing on the Stabroek Block.

“After completion of operations at Tripletail, the Noble Tom Madden drillship will next drill the Uaru-1 exploration well, located approximately 10 miles east of the Liza-1 well.

“The Stena Carron drillship is continuing drilling and evaluation activity at Ranger-2. The drillship will next conduct a production test at Yellowtail-1.”

Hess said that the Noble Bob Douglas drillship is currently conducting development drilling operations for the Liza Phase 1 project and that a fourth drillship, the Noble Don Taylor, is expected to arrive in Guyana in November and will drill the Mako-1 exploration well located approximately six miles south of the Liza-1 well.

Hess also announced an oil discovery at the Esox-1 well, part of the company’s “focused exploration programme in the deepwater Gulf of Mexico, which will be a low cost, high return tieback to Tubular Bells production facilities”. (CMC)

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