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A Look at Hess’s Guyana Interests

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Hess’s Guyana interests

Hess (HES), ExxonMobil (XOM), and CNOOC (CEO) jointly own interests in the Stabroek Block, located approximately 120 miles offshore Guyana. Hess, ExxonMobil, and CNOOC have 30%, 45%, and 25% stakes in the venture, respectively, and XOM is the operator.

Hess and its partners sanctioned the first phase of a planned multiphase development of the Liza Field in mid-2017. The first production is expected by 2020, with further exploration and appraisal drilling continuing into 2018.

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The Stabroek Block’s gross discovered recoverable resources, including Liza and other exploration wells on Liza Deep, Payara, and Snoek, are estimated to be 2.0 billion–2.5 billion barrels of oil equivalent. The Liza Field’s first phase of multiphase development is expected to have a gross capitalized cost of approximately $3.2 billion. Hess expects to develop ~450 million barrels of oil, with the first oil expected by 2020.

To fund its Guyana investments, Hess sold its interests in Norway to Aker BP for $2 billion, and its interests in Equatorial Guinea to Kosmos Energy and Trident Energy for $650 million. Elliott’s push for asset sales might hinder Hess’s ability to generate enough cash to fund future Guyana investments.

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