Latest update March 30th, 2026 5:45 PM
Hess boasts to shareholders about low cost of production for 5 Guyana projects
– sixth project plan on track for year-end
Kaieteur News – Hess Corporation, an American exploration company, has once again assured its shareholders of the multibillion dollar value of Guyana’s oil-rich Stabroek Block, revered for holding over 11 billion barrels of resources.
Hess Corporation’s CEO, John Hess
During a recent earnings call, the company boasted to shareholders about the five development projects it has received approval for in the block. The company highlighted that these projects, Liza Phase One, Liza Phase Two, Payara, Yellowtail and Uaru, have a breakeven spread of US$25 to US$35 per barrel Brent. It therefore means that if the price of a barrel of oil drops to US$25, the project would still deliver enough revenues to cover the operations.
With such a low cost of production and in an environment where the price per barrel is hovering around US$80, Hess is guaranteed to cream off US$1B in profits annually from at least four of those named projects. Hess also said that by 2027, that low cost of supply is expected to decline by a further 25 percent as it will embark on a number of operational efficiencies at its Guyana projects.
It was also keen to note that plans remain on track for a sixth project plan to be delivered to Guyanese authorities by year end. Together, these six projects are set to deliver a gross production capacity of more than 1.2 million barrels of oil per day. After highlighting the sweet economics of projects in the Stabroek Block, the company said it is clear that Guyana is central to its growth strategy.
In fact, Hess’ Chief Executive Officer (CEO) John Hess underscored Guyana’s importance as he reminded that more than 30 discoveries have been made on the Stabroek Block, underpinning a gross discovered recoverable resource estimate of more than 11 billion barrels of oil equivalent, with multibillion barrels of exploration potential remaining. The company head also noted that there is potential for up to 10 floating, production, storage and offloading (FPSOs) vessels to develop the discovered resources on the Stabroek Block.
As a result of its industry-leading operations in Guyana Hess also recalled that it was in June the company was named Exploration and Production Explorer of the Year in the 15th annual Wood Mackenzie exploration industry survey for the second consecutive year.
The Hess CEO said, “Successful execution of our strategy has uniquely positioned our company to deliver significant value to shareholders for years to come, both by growing intrinsic value and by growing cash returns. We plan to continue increasing our regular dividend to a level that is attractive to income-oriented investors but sustainable in a low oil price environment.”
He added, “As our free cash flow generation steadily increases in future years, share repurchases are expected to represent a growing proportion of our return of capital.” By investing only in high-return low-cost opportunities, the CEO expressed confidence that the company has built a differentiated and balanced portfolio, which he reminded, is focused on Guyana, the Bakken, Deepwater Gulf of Mexico and Southeast Asia. In the Stabroek Block, ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.
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