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Guyana oil boom: Hess among companies making new discoveries

By Angela Barnes

12:07, 6 January 2023

Hess Corporation logo and models of an oil rig,and oil barrels are pictured in and illustration
Guyana oil boom good news for Hess and Exxon – Photo: Getty

Guyana’s oil boom continues with energy giant Hess (HES) noting on Thursday that a seventh platform might be needed for an offshore discovery it made in 2022 at the Fangtooth-1 well.

Trade Hess Corporation (HES) price chart

Results from drilling operations at the site on the Stabroek Block could be disclosed in February, the company’s chief executive, John Hess, said at a Goldman Sachs conference.

Hess is part of the energy venture in the small South American nation. However, Exxon Mobil (XOM) is the largest oil producer in Guyana, and is the operator of the Stabroek, Canje and Kaieteur Blocks offshore.

ExxonMobil has made more than 30 discoveries on the block since 2015 and has ramped up offshore development and production.

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Exxon Mobil (XOM) price chart 

“ExxonMobil’s first two sanctioned offshore Guyana projects, Liza Phase 1 and Liza Phase 2, are now producing above design capacity and achieved an average of nearly 360,000 barrels of oil per day in the third quarter. A third project, Payara, is expected to start-up by the end of 2023, and a fourth project, Yellowtail, is expected to start-up in 2025,” the group said in a statement in October.

“ExxonMobil is currently pursuing environmental authorisation for a fifth project, Uaru. By the end of the decade, ExxonMobil expects Guyana’s oil production capacity to be more than one million barrels a day,” the company added.

Oil companies profiting from Guyana’s crude

In addition to Hess and Exxon, other oil and gas giants are set to profit from Guyana’s resources.

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As reported by Capital.com in December, BP (BP.) beat off competition for a contract to bring the country’s crude to the market.

BP (BP.) price chart

It will now look after Guyana's share of the commodity produced over the next year from two offshore production platforms - the Liza Destiny and Liza Unity. The group will also be tasked with providing benchmark and performance comparisons - and help the government understand the behaviour and yields of the Liza blend.

BP replaces Aramco Trading, which previously held the contract, the government of Guyana through the Ministry of Natural Resources confirmed in a statement

Largest oil discovery in last decade

Guyana is home to one of the largest oil discoveries in the last decade, with about 11 billion barrels found to date. As a result, the government there is forecasting output of around 825,000 barrels per day by 2025.

US crude oil (WTI) price chart

The huge offshore oil deposits being discovered is putting Guyana on track to become the world’s biggest per-capita crude producer.

Brent crude oil price chart

Markets in this article

HES
Hess
152.98 USD
-2.47 -1.590%
XOM
Exxon Mobil Corp (Extended Hours)
116.05 USD
-0.34 -0.290%
BP.
BP - GBP
4.574 USD
0.084 +1.880%

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