(Hess, 27.Apr.2023) — Hess Corporation (NYSE: HES) has made a final investment decision to proceed with Uaru, the fifth development on the Stabroek Block, after receiving government and regulatory approvals. Uaru will have a production capacity of approximately 250,000 gross barrels of oil per day with production targeted to startup in 2026.
- Uaru development on Stabroek Block receives government approval with production targeted to begin in 2026
- Fifth development will have a production capacity of approximately 250,000 gross barrels of oil per day
- Third development on Stabroek Block, Payara, is targeted for startup early fourth quarter
The $12.7bn Uaru development will target an estimated resource base of more than 800 million barrels of oil and include up to 10 drill centers and 44 production and injection wells. MODEC is constructing the floating production, storage and offloading (FPSO) vessel for Uaru, which will be called Errea Wittu, under an Engineering, Procurement and Construction (EPC) contract.
“We are excited to sanction Uaru, our fifth oil development on 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 remarkable potential of this world class resource for the benefit of all stakeholders. The world will need these vital oil resources to meet future energy demand and help ensure an affordable, just and secure energy transition.”
The Liza Phase 1 and Liza Phase 2 developments produced an average of 375,000 gross barrels of oil per day in the first quarter.
The third sanctioned development on the Stabroek Block, Payara, is targeted for startup early in the fourth quarter, with a gross production capacity of approximately 220,000 barrels of oil per day.
The fourth sanctioned development, Yellowtail, is expected to come online in 2025 with a gross production capacity of approximately 250,000 barrels of oil per day.
A sixth development, Whiptail, is expected to be submitted for government and regulatory approval later this year.
In total, six FPSOs with a gross production capacity of more than 1.2 million barrels of oil per day are expected to be online on the Stabroek Block by the end of 2027, with the potential for up to 10 FPSOs to develop the estimated gross discovered recoverable resources of more than 11 billion barrels of oil equivalent.
The Stabroek Block is 6.6 million acres. 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 Petroleum Guyana Limited holds 25 percent interest.