Guyana offshore development details surface

With Liza field phase one on schedule and first oil expected by the first quarter of 2020, additional information regarding phase two of the offshore Guyana development at the Stabroek block has emerged.

During Hess’ 1Q19 presentation, COO Greg Hill said phase two envisions six drill centers and that 30 wells are planned, 15 of which would be production, nine water injection and six gas injection.

This phase would use the Liza Unity FPSO and have capacity to produce up to 220,000b/d with output penciled in to start by mid-2022. A final investment decision is expected soon, subject to Guyanese government and regulatory approvals.

When asked about the political situation in Guyana, CEO John Hess said: “We don’t see the no-confidence vote or the overturn of the no-confidence vote of having any impact in the day to day running of the Guyanese government and their oil affairs.”

Meanwhile, commissioning of the Liza Destiny FPSO for phase one – up to 120,000b/d – is underway and the vessel is expected to arrive in the South American nation in the third quarter. For its part, the Noble Bob Douglas drillship is proceeding with development wells and the installation of subsea infrastructure continues.

A third development, Payara, would add 180,000-220,000b/d from a third FPSO. Sanctioning is expected late this year and first production in 2023.

On the exploration front, Hill said that this year’s drilling plans include a second well at the Ranger prospect and three additional wells, locations for which are being finalized.

This month, Hess and partner ExxonMobil announced a 13th discovery on the acreage.

Hess holds a 30% stake in the 26,800km2 Stabroek block alongside operator and ExxonMobil subsidiary Esso Exploration and Production Guyana (45%), and CNOOC Petroleum Guyana (25%).