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Yellowtail will deliver second lowest breakeven to date at giant Stabroek Block

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The largest development to date at the Stabroek Block will deliver the second lowest breakeven for the ExxonMobil-led consortium that has found over 10 billion barrels of oil equivalent resources in the South American country since 2015.

The breakeven for the 250,000 barrels per day (bpd) Yellowtail development is pegged at $29/BBL Brent. In comparison, Liza 1 (120,000 bpd) is $35/BBL, Liza 2 (220,000 bpd) is $25/BBL and Payara (220,000 bpd) is $32/BBL.

Low breakeven prices have made the Guyana basin one of the most competitive for exploration and production, even in the height of the COVID-19 pandemic.

An analysis completed by RS Energy of the 50 top global development projects and major shale plays shows that the Stabroek projects are expected to generate some of the lowest breakeven oil price for the top offshore developments and shale plays in the world.

“The implication of falling breakeven prices is that the upstream industry, over the last two years, has become more competitive than ever and is able to supply more volumes at a lower price,” Espen Erlingsen, Head of Upstream Research at Rystad Energy has said.

John Hess, CEO of Hess Corporation, a 30 percent stakeholder in the Stabroek Block, has said Guyana is positioned to play a major role in delivering low carbon intensity barrels to a global economy still dependent on fossil fuel to meet its energy needs.

“The world will need these low cost, high value resources to meet growing energy demand, particularly given underinvestment by our industry in recent years,” Hess said.

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