General News | Reserves

Hess, Exxon Up Stabroek Resource Potential +25% to Four Billion BOEs

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ExxonMobil and Hess have increased its estimate of the discovered recoverable resources for the Stabroek Block offshore Guyana to over 4 billion oil-equivalent barrels (up +25% from 3.2 billion BOEs previously estimated).

The increase follows completion of testing at the Liza-5 appraisal well, a discovery at Ranger, incorporation of the eighth discovery, Longtail, into the Turbot area evaluation and completion of the Pacora discovery evaluation.

Neil Chapman, senior vice president, Exxon Mobil Corporation, said: "Outstanding resource quality across these opportunities combined with industry-leading project execution capabilities will provide great value to resource owners, partners and our shareholders. Continued success in Guyana and progress in other upstream growth projects in the U.S. Permian Basin, Mozambique, Papua New Guinea and Brazil are giving us additional confidence in achieving our long-term earnings growth plans that we outlined in March."

Hess CEO John Hess added: "The Stabroek Block is a massive world class resource that keeps getting bigger and better. 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."

Future Plans for Stabroek

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.

ExxonMobil affiliate, Esso Exploration and Production Guyana Limited, is operator and holds 45% interest. Hess holds 30% interest and CNOOC Nexen Petroleum Guyana Limited holds 25%.