Latest update April 25th, 2024 12:59 AM
May 01, 2022 News
– Hess says Govt. instructed oil companies to speed up production
By Kiana Wilburg
Kaieteur News – Hess Corporation, which holds a 30 percent working interest in the Stabroek Block, recently disclosed that Payara, the third project being developed in the offshore concession, is expected to start production in 2023, one year ahead of schedule.
During its earnings call for the first quarter of 2022, Hess said the pulling forward of production start-up reflects strong execution by the operator being ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) while adding that it significantly enhances the net present value of the project. The company reminded that the Payara development will utilise the Prosperity floating, production, storage and offloading vessel (FPSO) with a gross capacity of 220,000 barrels of oil per day.
Kaieteur News previously reported that Payara is located 200 kilometres offshore Guyana in 1,800 metres water depth. Ten drill centres are planned along with up to 41 wells, including 20 production and 21 injection wells. The project will utilise onshore infrastructure which includes shore bases, warehouses, storage and pipe yards, fabrication facilities, fuel supply facilities, and waste management facilities in Guyana. The US$9 billion development will focus on an estimated resource base of about 600 million oil-equivalent barrels.
With the new timeline, Hess said too that it obviously accelerates their cash flow growth from its previous profile.
Chief Executive Officer (CEO), John Hess was keen to note that the accelerated production is in keeping with the government’s instructions to have oil development accelerated on the block.
The CEO said, “…The government has been very clear with us that they would like us as a joint venture to accelerate the development of their oil resources to basically improve the prosperity and have shared prosperity for all Guyanese citizens.”
As to the nature of the relationship between the Stabroek Block partners and the oil companies, Hess categorically stated that it is a very constructive working relationship.
Hess said, “…in terms of the Guyana government, our company and our joint venture have an excellent working relationship, a very constructive one with the government. Testament is the early April approval of the Yellowtail Project. We also want to help the government in social responsibility as well, trying to make a better future for all Guyanese.”
He added, “So it’s an excellent relationship and we continue to work with them. And as I said before, ExxonMobil has done an outstanding job on project management and execution, bringing a lot of value forward for our joint venture, for the people of Guyana and for our shareholders in the excellent achievements they’ve had in terms of being really ahead of schedule now on Liza Phase 1, ahead of schedule on Liza Phase 2, and ahead of schedule on Payara.”
He posited that this track record is expected to benefit the Guyanese people as well as its shareholders.
EEPGL, an affiliate of Exxon MobilCorporation holds a 45 percent interest in the Stabroek Block, Hess Guyana Exploration Limited holds a 30 percent interest and CNOOC Petroleum Guyana Limited holds a 25 percent interest.
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