Current HES Stock Info

Exxon increases Stabroek discovered recoverable resource estimate to 4 billion BOE; sees 750 MBOEPD from it by 2025

ExxonMobil (ticker: XOM) and Hess Corporation (ticker: HES) announced today in separate news releases a significant increase in the estimate of the discovered recoverable resources for the 6.6-million-acre Stabroek Block located offshore of Guyana.

The estimate of 4 BBOE is a 25% increase over the original estimate of 3.2 BBOE.

Exxon subsidiary Esso Exploration and Production Guyana Limited is operator of the project.

Exxon holds 45% interest in the Stabroek Block and Hess Guyana Exploration Ltd. holds 30%. CNOOC Nexen Petroleum Guyana Limited holds 25%.

Exxon increases Stabroek discovered recoverable resource estimate to 4 billion BOE; sees 750 MBOEPD from it by 2025

Image: Hess Corporation

Exxon raised its estimate of the discovered recoverable resources the to more than 4 BBOE, has advanced its evaluation to support a third phase of development and it is considering two additional phases.

Exxon bumped up the resource size after completion of testing at the Liza-5 appraisal well, a discovery at Ranger, incorporation of the Longtail discovery into the Turbot area evaluation, and after completing the Pacora discovery evaluation.

Exxon outlined the following development plans for Stabroek:

  • Guyana’s first development, Liza Phase 1, will use a floating production, storage and offloading (FPSO) vessel to produce 120,000 barrels of oil per day, starting by early 2020.
  • Liza Phase 2, which is targeted for sanctioning by the end of this year, will use an FPSO vessel designed to produce up to 220,000 barrels of oil per day and is expected to be producing by mid-2022.
  • The Liza-5 well successfully tested the northern portion of the Liza field and, along with the giant Payara field, will support a third phase of development in Guyana. The Payara development will target sanctioning in 2019 and will use an FPSO vessel designed to produce approximately 180,000 barrels of oil per day, as early as 2023.
  • The Longtail well established the Turbot-Longtail area as a potential development hub for recovery of more than 500 million oil-equivalent barrels.

Development could support up to five FPSOs producing 750 MBOPD

Exxon said the collective discoveries on the Stabroek Block area to date have established the potential for up to five FPSOs producing over 750,000 barrels per day by 2025.

Hess CEO John Hess said “The Stabroek Block is a massive world class resource that keeps getting bigger and better.

“Since the end of 2016, the estimate for recoverable resources on the block has quadrupled and we continue to see multi billion barrels of additional exploration potential on the block. We believe the investment opportunity in Guyana has the potential to be transformative for our company,” Hess said in a statement.


Legal Notice