• Estimate of gross discovered recoverable resources for the Stabroek Block increased to more than 4 billion barrels of oil equivalent
  • Planning underway for a third phase of development
  • Total discoveries to date establish potential to produce over 750,000 barrels per day by 2025

NEW YORK--(BUSINESS WIRE)-- Hess Corporation (NYSE: HES) announced an increased estimate of gross discovered recoverable resources for the Stabroek Block, offshore Guyana to more than 4 billion barrels of oil equivalent, up from the previous estimate of 3.2 billion barrels of oil equivalent.

The increase follows completion of testing at the Liza-5 appraisal well, a discovery at Ranger, incorporation of results from the eighth discovery on the Block at the Longtail exploration well into the Turbot area evaluation, and completion of the Pacora discovery evaluation. This evaluation supports a third phase of development and consideration of two additional phases. There is potential for additional development phases from significant undrilled targets and plans for rapid exploration and appraisal drilling, including at the Ranger discovery.

“The Stabroek Block is a massive world class resource that keeps getting bigger and better,” CEO John Hess said. “Since the end of 2016, the estimate for recoverable resources on the block has quadrupled and we continue to see multi billion barrels of additional exploration potential on the block. We believe the investment opportunity in Guyana has the potential to be transformative for our company and create significant value for our shareholders for many years to come.”

The Liza phase 1 development sanctioned in June 2017 is progressing rapidly. Development drilling began this May and construction of the floating production, storage and offloading vessel (FPSO) and subsea equipment is under way, laying the foundation for first production of gross 120,000 barrels of oil per day by early 2020. Phase 2 of the Liza development, which is targeted for sanction by the end of this year, will use a second FPSO with gross production capacity of approximately 220,000 barrels of oil per day – start up for Phase 2 is expected by mid 2022.

The Liza-5 well, which successfully tested the northern portion of the Liza Field, along with the giant Payara Field will support a third phase of development in Guyana. Planning is underway for this third phase of development, which is targeted to be sanctioned in 2019 and will use an FPSO designed to produce approximately 180,000 barrels of oil per day, with first production as early as 2023.

The Longtail discovery established the Turbot-Longtail area as a potential development hub for recovery of more than 500 million barrels of oil equivalent. Additional prospects to be drilled in this area could increase this estimate.

The collective discoveries on the Stabroek Block to date have established the potential for up to five FPSOs producing over 750,000 barrels per day by 2025.

The Stabroek Block is 6.6 million acres (26,800 square kilometers). Esso Exploration and Production Guyana Limited is operator and holds a 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds a 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.