Statement Regarding Guyana Drilling and Development Activities
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Statement Regarding Guyana Drilling and Development Activities

12.26.2018

NEW YORK -- Hess Corporation said today that drilling and development operations offshore Guyana are unaffected by an incident involving seismic acquisition vessels on Saturday, December 22. 

Two vessels operated by Petroleum Geo-Services ceased conducting 3-D seismic data acquisition in the northwest portion of the Stabroek Block offshore Guyana when approached by the Venezuela navy. The area where the incident occurred is more than 110 kilometers from the Ranger discovery, the closest of 10 oil discoveries made by ExxonMobil in the southeast section of the Stabroek Block.

Exploration and development drilling is continuing in the southeast area of the Stabroek Block. Activities related to the Liza Phase 1 development, which is expected to begin producing up to 120,000 barrels of oil per day in early 2020, are also unaffected.

ExxonMobil operates the Stabroek Block offshore Guyana under license from the government of Guyana. The acquisition of seismic data was being conducted under license from the government of Guyana in the country’s exclusive economic zone.

ExxonMobil estimates there is potential for at least five floating, production storage and offloading vessels (FPSO) on the Stabroek Block producing more than 750,000 barrels of oil per day by 2025.

Liza Phase 2 is expected to start production by mid-2022. Pending government and regulatory approvals, project sanction is expected in the first quarter of 2019 and will use a second FPSO designed to produce up to 220,000 barrels per day. Sanctioning of a third development, Payara, is also expected in 2019 with start up as early as 2023.

The Stabroek Block is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.                       

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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.

 


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