While the pressures of the COVID-19 pandemic have put an overwhelming strain on the oil and gas industry, Chief Executive Officer of Hess Corporation, John Hess has noted that the Liza Phase Two project remains on track for start-up in early 2022.
During his company’s second quarter earnings, the Hess boss reminded that the Liza Phase two development with an estimated breakeven price of US$25 per barrel Brent and production capacity of 220,000 gross barrels of oil per day, is expected to return significant value to shareholders. He was pleased to disclose on this note that the time for that is soon approaching since approximately 75% of the overall work has been completed.
Turning his attention to another important field development project, the Payara, Hess said that it has been deferred six to 12 months, pending government approval to proceed. He said too that planning for the fourth and fifth Floating Production Storage and Offloading (FPSOs) is underway and is expected to be further optimized by this year’s exploration and appraisal drilling results.
The CEO said, “Our strategy is guided by our company’s long-standing commitment to sustainability, which creates value for all our stakeholders. Our strategy has also enabled us to build a high-quality and diversified portfolio that is resilient in a low price environment and puts us in a strong position to prosper when oil prices recover.”
He added, “Our portfolio provides long-term resource growth with multiple phases of low-cost Guyana oil developments that are expected to drive industry-leading cash flow growth over the course of the decade.”
As the company’s portfolio generates increasing free cash flow, the Hess CEO said that it will prioritize debt reduction and increasing cash returns to shareholders.
