Hess Corporation’s Chief Executive Officer, John Hess recently disclosed that the startup of the Liza Phase 2 Project in the Stabroek Block which will utilize the Liza Unity floating production, storage, and offloading vessel (FPSO) with an expected capacity of 220,000 gross barrels of oil per day (bopd), remains on track for start-up in early 2022.
Hess said too that the third development, Payara, which will utilize the Prosperity FPSO with an expected capacity of 220,000 gross bopd is also running on schedule for the first oil in 2024. Once this occurs, Guyana is expected to be producing well over 600,000 barrels of oil since the Liza Destiny is expected to undergo upgrades that will see more than 130 bopd from the Liza Phase One Project.
During his company’s second-quarter earnings call, the CEO also said that a fourth development, Yellowtail, has been identified on the Stabroek Block with an anticipated startup in 2025, pending government approvals and project sanctioning.
Further to this, it was noted that the Mako-2 appraisal well completed in the second quarter confirmed the quality, thickness, and areal extent of the reservoir. When integrated with the previously announced results at Uaru-2, the combined discovered resource at Mako and Uaru is expected to support a fifth FPSO on the Stabroek Block.
The CEO said, “We expect to have at least six FPSOs on the Stabroek Block by 2027 with the potential for up to 10 FPSOs to develop the current discovered recoverable resource base. The Longtail-3 well encountered 230 feet of net pay, including newly identified, high-quality hydrocarbon-bearing reservoirs below the original Longtail-1 discovery intervals.”
Guyana Standard understands the well was drilled in more than 6,100 feet of water and is located approximately 2 miles south of the Longtail-1 well. With respect to the Koebi-1 exploration well, the Hess CEO said it was drilled to a depth of 20,700 feet but did not encounter commercial quantities of hydrocarbons. He was keen to note that second-quarter results include a charge of US$12 million in exploration expenses for well costs incurred.
As regards other exploration works, the oil exploration leader disclosed that the Stena DrillMax is continuing drilling operations at Whiptail-1 while the Noble Don Taylor is continuing drilling operations at Whiptail-2. He noted that the Stena Carron is performing a drill stem test on the Uaru-1 well while the Noble Tom Madden, the Noble Bob Douglas, and the Noble Sam Croft are drilling and completing Phase 2 development wells.
