Hess Corporation, the American conglomerate that has a 30 percent stake in the oil-rich Stabroek Block, was pleased to announce recently that the Liza Phase One development is progressing smoothly. In fact, Hess noted that the development is 70 percent complete. Specifically commenting on the progress of the Phase One Project was Hess’ Chief Operating Officer (COO), Greg Hill.
The official noted that the Liza Destiny FPSO, with a gross production capacity of 120,000 barrels of oil per day, has departed Singapore and is expected to arrive in Guyana in September. He said that drilling at the Phase One development wells by the Noble Bob Douglas drillship is proceeding to plan and the installation of subsea umbilicals, risers, and flowlines is approximately 70 percent complete.
Hill said, “The project is on track to achieve first oil by the first quarter of 2020. Liza Phase Two, sanctioned in May, will utilise the Liza Unity FPSO where fabrication activities are currently underway. Liza Unity will have a gross production capacity of 220,000 barrels of oil per day and will develop approximately 600 million barrels of oil. First oil is expected by mid-2022.”
Further to this, the COO stated that a third phase of development at Payara is expected to have a gross capacity of between 180,000 and 220,000 barrels of oil per day, with first oil on track for 2023.
Hill noted that the company’s execution continues to be strong, and in 2019, it is positioned to deliver production at the upper end of previous guidance range, along with lower capital and exploratory expenditures than previous guidance. Hill also shared that offshore cash engines continue to generate significant cash flow, while noting that the Bakken project in North Dakota is on a strong capital-efficient growth trajectory. He also said that Guyana continues to get bigger and better.
Considering the aforementioned, Hill said that it positions Hess to deliver industry-leading returns, material free cash flow generation, and significant shareholder value for many years to come.
