Hess maintains Suriname course amid Guyana build-out

Drilling of the Zanderij-1 prospect on Suriname offshore block 42 is penciled in for midyear, according to Greg Hill, chief operating office of Hess.

“We see the acreage as a potential play extension from the Stabroek block [in Guyana], with similar play types and trap styles,” Hill said during the New York-based company’s first quarter conference call.

Hess and partners Chevron and Shell, the operator, each have a one third interest in block 42.

In Suriname, Hess also has a 33% stake in block 59 which is shared equally with operator ExxonMobil and Equinor.

Source: Hess

Regarding Stabroek, CEO John Hess said that front-end engineering and design is underway for the fifth development (Uaru-Mako) with the goal of submitting a development plan to Guyana’s government by year-end.

Hess Guyana Exploration holds a 30% interest in the flagship block while ExxonMobil unit Esso Exploration and Production Guyana has a 45% operating interest and CNOOC Petroleum Guyana, a 25% stake.

Stabroek production comes from FPSOs Liza 1 (120,000b/d capacity) and Liza 2 (220,000b/d), while Payara (220,000b/d) and Yellowtail (250,000b/d) are scheduled to come online in late 2023 and 2025, respectively.

Current output at Liza 1 stands at 130,000b/d and is due to increase to over 140,000b/d this quarter. Production at Liza 2, which achieved first oil in February, is expected to reach capacity by Q3.

Hill added that “The hull [for Yellowtail] is actually done, it’s sitting in Indonesian waters waiting to come into Singapore as soon as Payara is complete and floats away.”

“We continue to see the potential for at least six floating production, storage and offloading vessels or FPSOs on the block in 2027 with a production capacity of more than one million gross barrels of oil per day and up to 10 FPSOs to develop the discovered resources on the block,” according to the CEO.

On the exploration and appraisal front, Hess has scheduled a 12-well program for Stabroek this year.

In Q1, Hess’ E&P capital and exploratory expenditures rose nearly 90% to US$580mn, driven by higher spend for Guyana that increased 85% to US$319mn.

Hess' Guyana holdings include an interest in the Kaieteur block.