Hess Sanctions Liza Phase 2 Development Offshore Guyana

Hess announced it has received regulatory approval from the government of Guyana and has made a final investment decision to proceed with the second phase of development of the Liza Field on the Stabroek Block, offshore Guyana.

Liza Phase 2 will utilize the Liza Unity Floating Production, Storage and Offloading vessel (FPSO) which will have the capacity to produce up to 220,000 gross barrels of oil per day. Six drill centers are planned with a total of 30 wells, including 15 production wells, nine water injection wells and six gas injection wells. First oil is expected by mid-2022. The development is expected to have a gross capital cost of approximately US$6 billion, including a lease capitalization cost of approximately US$1.6 billion for the FPSO, and will develop approximately 600 million barrels of oil. Excluding pre-sanction and lease costs (which will be accounted for as operating expense), Hess’ net share of development costs is forecast to be approximately US$1.6 billion, of which US$210 million is already included in Hess’ 2019 capital and exploratory budget.

“We are excited to achieve another significant milestone in the development of the Stabroek Block,” CEO John Hess said. “We look forward to continuing to work with the Government of Guyana and our partners to realize the extraordinary potential of this world class resource.”