Georgetown: Guyana’s first barrel of oil will be produced before 2020, Hess Corporation confirmed. During the presentation of its third quarter earnings, the company which has a 30 percent stake in the Stabroek Block said that production is expected in December 2019 from the Liza Phase One which would be using 17 wells.
Elaborating further on developments regarding its Guyana operations, CEO of Hess Corp., John Hess, reminded that the gross discovered recoverable resources are estimated at more than six billion barrels of oil and gas with multibillion barrels of future exploration potential remaining.
In September, the official reminded that along with the Operator of the block, ExxonMobil, it was announced that a fourth discovery was made at the Tripletail-1 well located in the Turbot area which is approximately three miles northeast of the Longtail discovery.
Hess noted that the well encountered approximately 108 feet of a high-quality oil-bearing sandstone reservoir. Subsequently, he said that additional hydrocarbon bearing reservoirs have been encountered below the previously announced Tripletail discovery.
He also said that the Tripletail is still under evaluation and will further underpin the Turbot area as a major development hub.
During the third quarter, the Chief Executive Officer noted that drilling and appraisal activities were completed at Hammerhead with encouraging results, including a successful drill stem test.
The official said that these results are being evaluated for potential future development. Further to this, John Hess explained that drilling and evaluation activities continue on the Ranger 2 well with the objective of appraising the Ranger oil discovery.
In terms of developments, the CEO said that the Liza Phase One development, which is targeted to start up in December will produce up to 120,000 gross barrels of oil per day utilising the Liza Destiny Floating Production Storage and Offloading vessel (FPSO), which arrived in Guyana on August 29, last.
With respect to the Liza Phase Two development, Hess said that this is also progressing to plan and will use a second FPSO, the Liza Unity, with a gross production capacity of 220,000 barrels of oil per day.
First oil from this field is expected by mid-2022. Reports indicate that planning is underway for a third development at Payara, which will use an FPSO with gross production capacity of 220,000 barrels of oil per day.
As for the third production field on the Stabroek Block called Payara, once approvals from the government are received within projected timelines, the official said that first production from that field is expected in 2023.
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