|Hess Sanctions Liza Phase 2 Development Offshore Guyana|
Liza Phase 2 will utilize the Liza Unity Floating Production, Storage
and Offloading vessel (FPSO) which will have the capacity to produce up
to 220,000 gross barrels of oil per day. Six drill centers are planned
with a total of 30 wells, including 15 production wells, nine water
injection wells and six gas injection wells. First oil is expected by
mid-2022. The development is expected to have a gross capital cost of
“We are excited to achieve another significant milestone in the
development of the Stabroek Block,” CEO
Update on Other Stabroek Developments
Liza Phase 1 remains on track to achieve first oil by the first quarter
of 2020. It will produce up to 120,000 gross barrels of oil per day at
peak rates utilizing the Liza Destiny FPSO, which is expected to arrive
A final investment decision is expected later this year for a third phase of development, Payara, subject to government and regulatory approvals. The Payara development is expected to produce between 180,000 and 220,000 gross barrels of oil per day with startup as early as 2023. Following the recent Yellowtail and Tilapia discoveries, the Turbot area is also expected to become another major development hub, and additional development potential is being evaluated in other areas of the Stabroek Block including at Hammerhead.
Exploration and Appraisal Update
Exploration activities continue at other locations on the Stabroek
Block. Following completion of well operations at the recently announced
Yellowtail discovery, the Noble Tom Madden will next drill the
Hammerhead-2 well. The Stena Carron will next drill the Hammerhead-3
well and will drill a second well at the Ranger discovery later in 2019.
The Noble Bob Douglas drillship is currently completing development
drilling operations for the Liza Phase 1 development.
The partners’ investment in the Guyanese economy has continued to
increase. The number of Guyanese nationals supporting project activities
more than doubled in 2018 to more than 1,000.
The Stabroek Block is 6.6 million acres (26,800 square kilometers).
Current gross discovered recoverable resources are estimated to be more
than 5.5 billion barrels of oil equivalent. The 13 discoveries on the
block to date have established the potential for at least five floating
production, storage and offloading (FPSO) vessels producing more than
750,000 barrels of oil per day by 2025.
This news release contains projections and other forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. These
projections and statements reflect the company’s current views with
respect to future events and financial performance. No assurances can be
given, however, that these events will occur or that these projections
will be achieved, and actual results could differ materially from those
projected as a result of certain risk factors. A discussion of these
risk factors is included in the company’s periodic reports filed with
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 disclosure relating to proved reserves in
Hess’ Form 10-K, File No. 1-1204, available from