(Seeking Alpha, Carl Surran, 25.Apr.2019) — Hess says Guyana’s latest offshore deepwater discovery contains oily fluids similar to those of the initial Liza discovery, which is being readied for first production early next year.
Yellowtail, the 13th discovery at Guyana’s deepwater Stabroek block by a partnership which also includes Exxon and China’s Cnooc, also is the fifth discovery in the block’s Turbot area, which is expected to become a major development hub, CEO John Hess said during today’s earnings conference call.
“Offshore Guyana is uniquely advantaged by its scale, low cost, reservoir quality, rapid cash paybacks and superior financial returns,” the CEO said.
The 292 ft. of high quality oil-bearing sandstone reservoir at Yellowtail, which was drilled to 18,445 ft. in more than 6K ft. of of water, “was a great result,” Hess COO Greg Hill said of the discovery.
Meanwhile, Phase 1 development of the Liza field continues, with subsea infrastructure “well advanced” on the project, the sanction of Liza Phase 2 is “imminent” after government and regulatory approvals which are expected soon, and final investment decision is expected later this year for Phase 3, Hill said.
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