Guyana’s oil is Hess top seller

Nov 01, 2024 News

—average price pegged at US$82 per barrel

Guyana’s Stabroek Block, where Hess holds 30% interest

Kaieteur News-American oil company Hess Corporation has revealed that Guyana’s oil has been its top seller over the first nine months of 2024, fetching an average price of US$82.18 per barrel.

This figure, reported in Hess’s Q3 estimates released on Wednesday, highlights Guyana’s product as the company’s most valuable, outperforming other regions in Hess’s portfolio. Crude from Guyana’s prolific Stabroek Block showed steady gains, selling at US$80.41 per barrel on average in 2023, up to US$82.18 this year.

The third-quarter report highlights the global variance in crude oil prices, emphasizing Guyana’s significance in Hess’s international lineup. Crude oil from North Dakota in the United States averaged a selling price of US$73.47 per barrel, while offshore U.S. production sold at US$76.77. Meanwhile, Malaysia and the Joint Development Area (JDA) averaged US$81.35 per barrel.

CEO of Hess Corporation, John Hess (Guyana’s oil is Hess top seller)

It should be noted that despite slight fluctuations, Hess’s portfolio saw an overall increase in average selling prices from the previous year. For crude oil, the worldwide average price rose from US$75.72 per barrel in 2023 to US$79.14 in 2024.

Excluding hedging, which provides a less buffered view of market dynamics, the average selling prices remained similar. Guyana’s crude maintained a robust US$82.18 per barrel, while Hess’s U.S. crude fetched an average of US$74.13, and Malaysia and JDA oil sold at US$81.35.

Guyana’s Stabroek Block which is estimated to hold 11.6 billion barrels of oil is operated by ExxonMobil Guyana Limited. The block is located approximately 120 miles offshore Guyana, and is 6.6 million acres. Oil was discovered in 2015 and by December 2019 oil production commenced. Currently they are three Floating Production, Storage, and Offloading units (FPSOs) operating in the Stabroek Block. The Liza Destiny, Liza Unity, and Prosperity FPSOs are currently producing a combined 650,000 barrels of oil per day (bpd).

Moreover, this publication recently reported that Hess estimated results on its operations for the third quarter of 2024, places a spotlight on the company’s increased oil production in Guyana, where Hess holds a 30% interest in the prolific Stabroek Block. In relation to Guyana, Hess reported that net production from its operations reached 170,000 barrels of oil per day (bopd) up 57% from 108,000 bopd in the same period last year. Notably, the company’s overall net production in the third quarter rose to 461,000 barrels of oil equivalent per day (boepd), up 17% from 395,000 boepd in 2023. This increase, the company said is, “primarily due to higher production in Guyana.”

Back in 2023, it was announced that American oil giant, Chevron will be acquiring Hess for US$53 billion; which Hess shareholders approved back in May. While the U.S. Federal Trade Commission allowed Chevron’s purchase of Hess Corporation, the deal still need to clear a challenge by ExxonMobil and CNOOC Limited, Hess’s partners in a Guyana joint venture, who claim a right of first refusal to any sale of Hess’s Guyana assets, the prize in the proposed merger. A three-judge arbitration panel is due to consider the case next May.

Guyana’s oil is Hess top seller

crude, Guyana, Hess Corporation, John Hess, sale, Stabroek Block

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