Hess Corporation, which holds a 30 percent stake in the Stabroek Block, unveiled a significant discovery at the Lancetfish-2 appraisal well in the block, encountering approximately 125 feet of net oil pay in appraisal reservoirs and 65 feet of net oil pay in a new discovery interval. Concurrently, the American oil explorer reported a third quarter 2023 profit of US$504 million, or US$1.64 per share, slightly down from US$515 million, or US$1.67 per share, in the same period last year.
Operational highlights for Hess emphasize an increased net production of 395,000 barrels of oil equivalent per day (boepd) in the third quarter of 2023, up from 351,000 boepd in the third quarter of 2022, attributed primarily to elevated production in Bakken (USA), Guyana, and Southeast Asia.
In the Stabroek Block, specifically from the Liza Destiny and Liza Unity FPSOs, Hess reported a net production total of 108,000 bopd in the third quarter of 2023, compared with 98,000 bopd in the prior-year quarter.
During the third quarter of 2023, Hess said a mechanical issue on the Liza Destiny FPSO vessel temporarily reduced production. However, repairs were swiftly managed by the operator in October, and current production levels stand between 150,000 to 160,000 gross bopd.
Discussing other Stabroek Block ventures, Hess indicated the forthcoming start up of the Payara development, expected to begin in the fourth quarter with a production capacity of approximately 220,000 gross bopd. Following on, the Yellowtail development, sanctioned in April 2022, is projected to start production in 2025 with a capacity of about 250,000 gross bopd. Moreover, the Uaru development, sanctioned in April 2023, is predicted to commence production in 2026, offering the same capacity.
Chevron Corporation’s merger with Hess was also highlighted, revealing the acquisition of all outstanding shares at Hess Corporation for a staggering US$53 billion, or US$171 per share. This move will notably provide Chevron with exclusive control over 30 percent of the working interest in Guyana’s Stabroek Block, a significant location boasting over 11 billion barrels of oil resources. That merger is expected to become official in the first quarter of 2024 pending regulatory approvals.
Since the commencement of oil production in December 2019 at the Stabroek Block’s Liza Phase One Project, Exxon successfully initiated the Liza Phase Two in February 2022. Both projects are collectively producing about 400,000 barrels of oil per day. The collective ambition of Exxon and its partners targets over 1.2 million barrels of oil by 2027, positioning Guyana’s Stabroek Block as a rapidly developing global oil epicenter.
