Jan 27, 2022 News
“Drill baby, baby drill!!!”
– As latest discoveries projected to hold half a billion barrels of resources
Kaieteur News – Hess Corporation on Wednesday disclosed during its fourth quarter earnings call for 2021 that six drill ships have been deployed to various parts of the Stabroek Block to define and test more oil wells.
The company said this comes on the heels of the two significant finds made earlier this year by ExxonMobil’s affiliate and operator of the block, Esso Exploration and Production Guyana Limited (EEPGL). The finds are so considerable that Rystad Energy, an international consultancy group, estimates that together, the two discoveries—Fangtooth and Lau Lau alone—could hold half a billion barrels of oil resources.
Kaieteur News reported that the Fangtooth-1 well encountered approximately 164 feet of high quality oil bearing sandstone reservoirs, and confirms the deeper exploration potential of the Stabroek Block. The well was drilled in 6,030 feet of water and is located approximately 11 miles northwest of the Liza Field.
With regard to the Lau Lau-1 well, it encountered approximately 315 feet of high quality hydrocarbon bearing sandstone reservoirs. The well was drilled in 4,793 feet of water and is located approximately 42 miles southeast of the Liza Field.
Following the completion of the Fangtooth-1 well, Hess said the Stena DrillMAX will begin drilling at the Tarpon prospect and following the completion of the Lau Lau-1 well, the Noble Don Taylor began drilling at the Barreleye prospect.
It was also disclosed that the Stena Carron completed drill stem tests on the Longtail-2, Whiptail-2 and Turbot-2 wells, and is currently performing a drill stem test on the Tilapia-1 well. The Noble Sam Croft, the Noble Bob Douglas and the Noble Tom Madden are currently drilling and completing development wells at Liza Phase 2 and the Payara Field.
Additionally, Hess Corporation reported that it had a net income of US$265 million, or $0.85 per share, in the fourth quarter of 2021, compared with a net loss of US$97 million, or US$0.32 per share, in the fourth quarter of 2020.
The Corporation was keen to note that its net production from the Liza Destiny floating production, storage and offloading vessel (FPSO) was 31,000 barrels of oil per day (bopd) in the fourth quarter of 2021 compared with 26,000 bopd in the prior-year quarter. On October 25, 2021, Hess recalled that the Liza Unity FPSO, with an expected capacity of 220,000 gross bopd, arrived at the Stabroek Block and startup of Phase 2 of the Liza Field development remains on track for the first quarter of 2022.
As for the third development, Payara, Hess said this will utilize the Prosperity FPSO with an expected capacity of 220,000 gross bopd while adding that first oil is expected in 2024. This newspaper previously reported that the fourth development, Yellowtail, was submitted to the government of Guyana for approval in the fourth quarter. Pending government approval and project sanctioning, the project is expected to have a capacity of 250,000 gross bopd with first oil anticipated in 2025. Hess reminded yesterday that the company expects to have at least six FPSOs on the Stabroek Block in 2027, with the potential for up to 10 FPSOs to develop the current discovered recoverable resource base.
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