…company’s Stabroek block take ramps up following Prosperity startup
Hess Corporation, one of the Stabroek block partners where United States (US) oil giant ExxonMobil is the operator, is projecting that 15 cargos of crude oil will be sold from Guyana’s operations in the final quarter of this year.
In the company’s reportage of its 2024 third quarter results, Hess had revealed that 14 cargos of crude oil were sold from Guyana, an increase compared to the nine cargos that were sold in the 2023 third quarter. This is expected to increase even more as the year draws to a close.
“In the third quarter of 2024, 14 cargos of crude oil were sold from Guyana, compared with nine cargos in the prior-year quarter. In the fourth quarter of 2024, 15 cargos of crude oil are expected to be sold,” Hess Corporation said.
Hess reported that based on its 30 per cent shares in the Stabroek block, net production from the Stabroek block was 170,000 barrels of oil per day (BOPD), another increase compared to the 108,000 BOPD in the 2023 third quarter.
“Net production totaled 170,000 BOPD in the third quarter of 2024, compared with 108,000 BOPD in the prior-year quarter, primarily due to the start-up of the third development on the block, Payara, which commenced production in November 2023.”
“Guyana’s net production is forecasted to be in the range of 185,000 BOPD to 190,000 BOPD in the fourth quarter of 2024, reflecting recovery from planned downtime in the third quarter,” Hess Corporation further explained.
Exxon, through its local subsidiary Esso Exploration and Production Guyana Limited (EEPGL), is the operator of the Stabroek Block and holds 45 per cent interest in the block. Hess Guyana Exploration Ltd holds 30 per cent interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.
The Liza Phases One and Two and Payara Projects, all of which combined are producing over 600,000 barrels of oil per day, account for the three floating, production, storage and offloading (FPSO) vessels operating in Guyana’s Stabroek Block in waters offshore.
When it comes to the Prosperity FPSO, Exxon has said that it is performing beyond expectations. For the first half of 2024, Guyana produced 113.5 million barrels of oil, and with increased production from the Prosperity FPSO vessel, it is expected that production will cross the 220-million-barrel threshold by year-end.
The current production figures will be further buttressed by the Yellowtail and Uaru developments, which are already underway and are anticipated to contribute 250,000 barrels of oil each following their respective start-ups.
An application for the sixth development, the Whiptail Project, was submitted by the Stabroek Block operator to the Guyana Government last year, and has already received the necessary approvals, with Exxon making its Final Investment Decision (FID) in April. This project will see Guyana producing just over 1.2 million barrels of oil per day by 2027.
In addition to at least these six projects offshore Guyana that Exxon anticipates will be online by 2027, it is also eyeing the possibility of having 10 FPSOs operational by 2030. Production has already started on three projects, with the Liza Destiny and Unity and the Prosperity FPSO vessels in operation.
Meanwhile, the Yellowtail development, which will be Exxon’s fourth development in Guyana’s waters, has an anticipated start-up of 2025. The Uaru oil development, which will be the fifth one for the company offshore Guyana, is targeting between 38 and 63 development wells, including production, water injection, and gas re-injection wells. Exxon had also previously made known that first oil from the Uaru development is anticipated by late 2026 or early 2027.
ExxonMobil’s seventh development in Guyana’s waters, dubbed the Hammerhead development, would feature up to 30 wells. It is targeting a 2029 start-up, according to documents submitted to the Environmental Protection Agency (EPA), where it awaits approval. (G3)
