Saturday, July 2, 2022

At current oil price, Yellowtail Project holds GY$19.3 trillion worth of oil

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Ahead of its 2022 first quarter earnings call this morning, Hess Corporation disclosed that the Yellowtail Project is expected to develop a gross resource base of approximately 925 million barrels of oil.

At current market price for Brent crude, (US$100 to US$102.5 a barrel), the resource base is worth US$92.5B or GY$19.3 trillion.

Hess recalled that it was in April 2022, that a final investment decision was made to proceed with the US$10B Yellowtail development on the Stabroek Block after the development plan received approval from Guyana.

Yellowtail, the largest development thus far on the Block, will utilise the ONE GUYANA FPSO, which is expected to have a capacity of up to 250,000 gross bopd, with first production expected in 2025. Six drill centers are planned with up to 26 production wells and 25 injection wells.

Excluding pre-sanction costs and FPSO purchase cost, the Corporation’s net share of development costs is forecast to be approximately US$2.3 billion, of which approximately US$210 million is expected in 2022, US$430 million in 2023, US$585 million in 2024, US$390 million in 2025 and US$295 million in 2026.

Further details on the company’s fiscal performance for 2022 along with other matters will be discussed during an earnings call scheduled to be held before noon.

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