Hess Announces Oil Discovery at Uaru-2, Offshore Guyana
April 27 2021 - 8:30AM
Business Wire
- Adds to previous recoverable resource estimate of
approximately 9 billion barrels of oil equivalent
- Expect to have at least six floating production storage and
offloading vessels (FPSOs) on the Stabroek Block by 2027
- Potential for up to 10 FPSOs to develop the current
discovered recoverable resource base
Hess Corporation (NYSE: HES) today announced another oil
discovery offshore Guyana at the Uaru-2 well on the Stabroek Block,
which will add to the previously announced gross discovered
recoverable resource estimate for the block of approximately 9
billion barrels of oil equivalent.
Uaru-2 encountered approximately 120 feet (36.7 meters) of high
quality oil bearing sandstone reservoir, including newly identified
intervals below the original Uaru-1 discovery. The well was drilled
in 5,659 feet (1,725 meters) of water and is located approximately
6.8 miles (11 kilometers) south of the Uaru-1 well.
“The Uaru-2 discovery will add to the discovered recoverable
resource estimate of approximately 9 billion barrels of oil
equivalent,” CEO John Hess said. “We expect to have at least six
FPSOs on the Stabroek Block by 2027, with the potential for up to
10 FPSOs to develop the current discovered recoverable resource
base.”
Production from the Liza Phase 1 development on the Stabroek
Block utilizing the Liza Destiny FPSO reached its nameplate
capacity of 120,000 gross barrels of oil per day in December 2020
and remained at this level during the first quarter of 2021. In mid
April, production from the Liza Destiny was curtailed for several
days after a minor leak was detected in the flash gas compressor
discharge silencer. Production has since ramped back up and is
expected to remain in the range of 100,000-110,000 gross barrels of
oil per day until repairs to the discharge silencer are completed
in approximately three months. Following this repair, production is
expected to return to, or above, nameplate capacity.
Startup of Liza Phase 2 remains on track for early 2022
utilizing the Liza Unity FPSO with production capacity of
approximately 220,000 gross barrels of oil per day. A third
development at the Payara Field was sanctioned in September 2020
that will utilize the Prosperity FPSO with production capacity of
220,000 gross barrels of oil per day; first oil is expected in
2024. The hull for the Prosperity FPSO is complete, and topsides
construction activities have commenced in Singapore.
A fourth development, Yellowtail, has been identified on the
Stabroek Block with anticipated startup in 2025, pending government
approvals and project sanctioning. This project will develop the
Yellowtail and Redtail fields, which are located approximately 19
miles (30 kilometers) southeast of the Liza developments.
The Stabroek Block is 6.6 million acres. ExxonMobil affiliate
Esso Exploration and Production Guyana Limited is operator and
holds 45 percent interest in the Stabroek Block. Hess Guyana
Exploration Ltd. holds 30 percent interest and CNOOC Petroleum
Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds
25 percent interest.
Hess Corporation is a leading global independent energy company
engaged in the exploration and production of crude oil and natural
gas. More information on Hess Corporation is available at
http://www.hess.com.
Cautionary Statements
This news release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Words such as “anticipate,” “estimate,” “expect,”
“forecast,” “guidance,” “could,” “may,” “should,” “would,”
“believe,” “intend,” “project,” “plan,” “predict,” “will,” “target”
and similar expressions identify forward-looking statements, which
are not historical in nature. Our forward-looking statements may
include, without limitation, the expected number, timing and
completion of our development projects and estimates of capital and
operating costs for these projects; estimates of our crude oil and
natural gas resources and levels of production; and our future
financial and operational results. Forward-looking statements are
based on our current understanding, assessments, estimates and
projections of relevant factors and reasonable assumptions about
the future. Forward-looking statements are subject to certain known
and unknown risks and uncertainties that could cause actual results
to differ materially from our historical experience and our current
projections or expectations of future results expressed or implied
by these forward-looking statements. The following important
factors could cause actual results to differ materially from those
in our forward-looking statements: fluctuations in market prices or
demand for crude oil, NGLs and natural gas, including due to the
global COVID-19 pandemic or the outbreak of any other public health
threat, or due to the impact of competing or alternative energy
products and political conditions and events; potential failures or
delays in increasing oil and gas reserves and in achieving expected
production levels, including as a result of unsuccessful
exploration activity, drilling risks and unforeseen reservoir
conditions; inherent uncertainties in estimating quantities of
proved reserves and resources; changes in laws, regulations and
governmental actions applicable to our business, including
legislative and regulatory initiatives regarding environmental
concerns, such as measures to limit greenhouse gas emissions and
flaring; the ability of our contractual counterparties to satisfy
their obligations to us, including the operation of joint ventures
which we may not control; unexpected changes in technical
requirements for constructing, modifying or operating exploration
and production facilities and/or the inability to timely obtain or
maintain necessary permits; potential disruption or interruption of
our operations due to catastrophic events, including the global
COVID-19 pandemic; and other factors described in Item 1A—Risk
Factors in our Annual Report on Form 10-K and any additional risks
described in our other filings with the Securities and Exchange
Commission. As and when made, we believe that our forward-looking
statements are reasonable. However, given these risks and
uncertainties, caution should be taken not to place undue reliance
on any such forward-looking statements since such statements speak
only as of the date when made and there can be no assurance that
such forward-looking statements will occur and actual results may
differ materially from those contained in any forward-looking
statement we make. Except as required by law, we undertake no
obligation to publicly update or revise any forward-looking
statements, whether because of new information, future events or
otherwise.
We use certain terms in this release relating to resources other
than proved reserves, such as unproved reserves or resources.
Investors are urged to consider closely the oil and gas disclosures
in Hess Corporation’s Form 10-K, File No. 1-1204, available from
Hess Corporation, 1185 Avenue of the Americas, New York, New York
10036 c/o Corporate Secretary and on our website at www.hess.com.
You can also obtain this form from the SEC on the EDGAR system.
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version on businesswire.com: https://www.businesswire.com/news/home/20210427005660/en/
Investor: Jay Wilson (212) 536-8940 jrwilson@hess.com
Media: Lorrie Hecker (212) 536-8250 lhecker@hess.com
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