Thursday, August 18, 2022

Hess could lift around 24 million barrels of oil from Stabroek Block this year

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OilNOW
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When the Liza Phase 2 development comes on stream this quarter and reaches full production later this year, Hess Corporation expects to collect 24 lifts from its Guyana operations. It would also be well positioned to clear off its US$500M term loan.

Making this disclosure last Wednesday was John Rielly, the Chief Financial Officer for Hess Corporation. He was at the time providing shareholders with a fiscal review of the company’s performance in the fourth quarter of 2021.

In the first quarter of 2022, Rielly said, “We expect to have three liftings from Guyana with two lifts coming from the Liza Destiny and our first lift from the Liza Unity expected to occur at the end of March. In the second quarter, we expect a total of five liftings. After the Liza Unity reaches full production, which is currently projected for the third quarter of this year, we expect to have eight liftings per quarter in Guyana from these two FPSOs.”

In total, Rielly said Hess expects 24 lifts for 2022 in Guyana.

After startup of the Liza Phase 2 development, Rielly said the company intends to pay off the remaining US$500 million on its term loan and increase dividend to shareholders.

“With our strong cash and liquidity positions, and our industry leading cash flow growth, we are well positioned to significantly improve our credit metrics and increase cash returns to our shareholders in the coming years,” the CFO expressed.

He said the company remains committed to returning the majority of its increasing free cash flow to shareholders through further dividend increases and share repurchases.

OilNOW previously reported that the US$6 billion Liza Phase 2 development will have a total of six drill centers as well as approximately 30 wells, including 15 for production, nine for water injection and six for gas injection.

The project will utilize the Liza Unity FPSO which was constructed in Singapore. The vessel will have a gross production capacity of 220,000 barrels of oil per day and will develop approximately 600 million barrels of oil.

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