Hess Takes Final Investment Decision for Liza Phase 1 Development Offshore Guyana
NEW YORK--(BUSINESS WIRE)--#FID--Hess Corporation (NYSE:HES) today announced it has sanctioned the first phase of development of the Liza Field, one of the industry’s largest oil discoveries of the past decade, located on the Stabroek Block offshore Guyana. In addition, the company announced positive results from the Liza-4 well, which encountered more than 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoirs and will underpin a potential Liza Phase 2 development. Gross discovered recoverable resources for the Stabroek Block are now estimated to be 2.0 billion to 2.5 billion barrels of oil equivalent, including Liza and other successful exploration wells on Liza Deep, Payara and Snoek.
The first phase of a planned multiphase development of the Liza Field is expected to have a gross capital cost of approximately $3.2 billion for drilling and subsea infrastructure and will develop approximately 450 million barrels of oil, with first oil expected by 2020. The first phase of development will utilize a leased floating production, storage and offloading vessel (FPSO) that will have the capacity to process up to 120,000 barrels of oil per day from four subsea drill centers consisting of 17 wells, including eight producers, six water injectors and three gas injectors. Hess’ net share of development costs is forecast to be approximately $955 million, of which $110 million is already included in Hess’ 2017 capital and exploratory budget. Of the remaining net development costs, approximately $250 million is expected in 2018 and approximately $330 million in 2019, with the balance expected between 2020 and 2021.
“Development of the world class Liza resource with a low cost, phased approach accelerates first production and positions us to deliver significant value to our shareholders,” CEO John Hess said. “We look forward to working with our partners and with the Government of Guyana on this important project.”
In 2017 and 2018, Hess and its partners plan to continue exploration and appraisal of the 6.6 million acre Stabroek block. There are numerous prospects across multiple play types on the block, representing additional multibillion barrel unrisked exploration potential. Drilling of the Payara-2 well, which will also test a deeper prospect underlying the Payara oil discovery, is expected to commence in late June following completion of a drillstem test at Liza-4.
Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Limited 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.
Cautionary Statements
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 the Securities and Exchange Commission.
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 Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com You can also obtain this form from the SEC on the EDGAR system.
ContactsHess Corporation
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Investors:
Jay Wilson, 212-536-8940
[email protected]
or
Media:
Lorrie Hecker, 212-536-8250
[email protected]
Announces Positive Liza-4 Results, Further Increasing Resource
Estimate
NEW YORK–(BUSINESS WIRE)–#FID–Hess Corporation (NYSE:HES) today announced it has sanctioned the first
phase of development of the Liza Field, one of the industry’s largest
oil discoveries of the past decade, located on the Stabroek Block
offshore Guyana. In addition, the company announced positive results
from the Liza-4 well, which encountered more than 197 feet (60 meters)
of high-quality, oil-bearing sandstone reservoirs and will underpin a
potential Liza Phase 2 development. Gross discovered recoverable
resources for the Stabroek Block are now estimated to be 2.0 billion to
2.5 billion barrels of oil equivalent, including Liza and other
successful exploration wells on Liza Deep, Payara and Snoek.
The first phase of a planned multiphase development of the Liza Field is
expected to have a gross capital cost of approximately $3.2 billion for
drilling and subsea infrastructure and will develop approximately 450
million barrels of oil, with first oil expected by 2020. The first phase
of development will utilize a leased floating production, storage and
offloading vessel (FPSO) that will have the capacity to process up to
120,000 barrels of oil per day from four subsea drill centers consisting
of 17 wells, including eight producers, six water injectors and three
gas injectors. Hess’ net share of development costs is forecast to be
approximately $955 million, of which $110 million is already included in
Hess’ 2017 capital and exploratory budget. Of the remaining net
development costs, approximately $250 million is expected in 2018 and
approximately $330 million in 2019, with the balance expected between
2020 and 2021.
“Development of the world class Liza resource with a low cost, phased
approach accelerates first production and positions us to deliver
significant value to our shareholders,” CEO John Hess said. “We look
forward to working with our partners and with the Government of Guyana
on this important project.”
In 2017 and 2018, Hess and its partners plan to continue exploration and
appraisal of the 6.6 million acre Stabroek block. There are numerous
prospects across multiple play types on the block, representing
additional multibillion barrel unrisked exploration potential. Drilling
of the Payara-2 well, which will also test a deeper prospect underlying
the Payara oil discovery, is expected to commence in late June following
completion of a drillstem test at Liza-4.
Esso Exploration and Production Guyana Limited is operator and holds 45
percent interest in the Stabroek Block. Hess Guyana Exploration Limited
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.
Cautionary Statements
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
the Securities and Exchange Commission.
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 Hess Corporation, 1185
Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary
and on our website at www.hess.com
You can also obtain this form from the SEC on the EDGAR system.
Contacts
Hess Corporation
Investors:
Jay Wilson,
212-536-8940
[email protected]
or
Media:
Lorrie
Hecker, 212-536-8250
[email protected]
