With the Liza Destiny and Liza Unity FPSOs producing approximately 360,000 barrels of oil per day (bpd), Guyana is already the second leading productive asset for Hess Corporation, a 30% partner in the Stabroek Block.
And once the Prosperity and One Guyana vessels come into operation by 2023 and 2025 respectively, the South American country will easily take the leading spot.
Those platforms will together produce no less than 470,000 bpd with room for debottlenecking on each vessel later. By 2025, 30% of at least 830,000 bpd would be going to Hess.
Guyana’s growing significance in Hess’ portfolio was clearly defined during the company’s Wednesday release of its production data across other assets. Hess said net production from the North Dakota Bakken was 166,000 barrels of oil equivalent per day (boepd) compared with 148,000 boepd in the prior-year quarter. Hess said this was primarily due to increased drilling and completion activity as well as a curtailment of production in the third quarter of 2021 resulting from planned maintenance activities.
The corporation said it also added a third drilling rig in September 2021 and a fourth drilling rig in July 2022. Bakken net production is therefore forecast to be in the range of 165,000 boepd to 170,000 boepd in the fourth quarter and approximately 155,000 boepd for the full year 2022.
In the Gulf of Mexico, Hess said net production was 30,000 boepd, compared with 32,000 boepd in the prior-year quarter. In Southeast Asia, net production its Malaysia–Thailand Joint Development Area (JDA) was 57,000 boepd in the third quarter of 2022 compared with 50,000 boepd in the prior-year quarter, primarily due to higher buyer nominations.
At the Stabroek Block, Hess said net production totalled 98,000 bopd in the third quarter of 2022 compared with 32,000 bopd in the prior-year quarter. For the full year 2022, it said Guyana’s net production is forecast to be approximately 77,000 bopd.
Hess continues to see the potential for six oil floating oil platforms by 2027 with production capacity of more than one million barrels of oil per day.
No other asset in Hess’ portfolio is riding on the same trajectory.
With multiple phases of low-cost oil developments coming online in Guyana and its robust inventory of high-return drilling locations in the Bakken, Hess holds an industry-leading rate of change and durability story thereby providing a unique value proposition for shareholders.