Latest update May 15th, 2024 12:59 AM
Sep 09, 2023 ExxonMobil, News, Oil & Gas
Kaieteur News – The Guyana Government’s approval of a one-year exploration extension for the Stabroek Block signals its understanding of the challenges ExxonMobil and its partners faced during the COVID-19 pandemic says Hess Corporation.
The company further noted that it also demonstrates the administration’s support for Exxon’s operations in the deepwater concession. Specifically, making these and other comments at a recent energy conference was Hess’ Chief Executive Officer (CEO), John Hess.
During his presentation, Hess said the partners’ exploration licence was extended from 2026 to 2027. This followed a petition that was made back in 2020 by ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) along with Hess Corporation and CNOOC Petroleum Guyana Limited.
Hess said, “During COVID-19, we had to put the drilling on hold for safety reasons…We were operating three rigs in the basin basically for development but we shut down exploration because we just couldn’t get all the people to operate…We went to the government as a joint venture and said we really would appreciate getting another year on the exploration licence because COVID almost force-majeured operations…”
The CEO added, “The government was very reasonable with us and we got an extension for our exploration licence from 2026 to 2027. We also got an extension for relinquishment (of 20 percent of the block) from October 2023 to October 2024. I think it reflects well on government; that it worked with us and this was a reasonable outcome.”
The Hess boss also said the extension allows Exxon and partners more running room to execute a very healthy inventory of drilling prospects in the Stabroek Block. He said this could see about 10 to 12 wells being drilled per year.
Hess also lauded the Stabroek Block as being one of the most transformational investment opportunities for his company given its outstanding characteristics. In this regard, Hess said the Stabroek Block spanning 6.6 million acres, is home to 32 significant discoveries which hold more than 11 billion barrels of oil equivalent resources with multi-billion barrels waiting to be unlocked. He said too that the discoveries are some of the industry’s largest in the past decade.
In addition, the CEO said most of the sanctioned projects have occurred at the bottom of the offshore cost cycle. With such strategic advantages in play, Hess said Guyana is indeed an unparalleled investment destination.
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