Hess Corporation’s Chief Executive Officer (CEO), John Hess, said the market can look forward to a “major upgrade” to Guyana’s Stabroek Block resource base which stands at 11 billion barrels of oil equivalent resources.
During his recent participation at the Bank of America Securities 2022 Global Energy Conference, Hess said this augmentation will follow the completion of appraisals for nine discoveries made this year.
The country had opened the year with an announcement from ExxonMobil that oil was found at the Fangtooth-1 and Lau Lau-1 wells. Discoveries were also recorded at Barreleye-1, Patwa-1 and Lukanani-1 in April, 2022. This trend continued for Seabob and Kiru-Kiru as announced in July. In October, Exxon also announced discoveries at the Sailfin-1 and Yarrow-1 wells.
If the Stabroek Block partners are to grow future cash flow for the country and its shareholders, then they need to pursue this pattern of growth, the CEO stated.
“We had our first discovery in 2015 (at Liza-1) and this is on a piece of real estate that stretches over 6 million acres. We have a 30% stake there and Exxon has 45% with the remainder being held by our Chinese partner, CNOOC. We have had (over 33) significant discoveries. We had nine alone this year… Fortunately for us, these are all low-cost barrels,” Hess said.
With four sanctioned projects carrying a breakeven range of US$25-US$35 a barrel, the CEO said the partners are in a league of their own as they sit on a growing piece of real estate in Guyana. “It is one of the best the industry has seen this decade. We have seen fantastic exploratory results and there is potential for doubling those finds,” Hess said.
He said Guyana will no doubt remain critical to his company’s future.