Guyana: 9th oil discovery announced as Hess hits Hammerhead-1 well

 9th oil discovery announced as Hess hits Hammerhead-1 well

August 30, 2018 – i-News Guyana

Hess Corporation, which holds 30 per cent interest in the Stabroek Block, on Thursday announced the ninth oil discovery offshore Guyana at the Hammerhead-1 well, marking its fifth oil discovery on the Stabroek Block in the past year and proving a new play concept for potential development.

According to a statement from the Business Wire, Hammerhead-1 encountered approximately 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 13,862 feet (4,225 meters) depth in 3,373 feet (1,150 meters) of water.      

The Stena Carron drillship began drilling on July 27, 2018.

“Hammerhead is another significant oil discovery that further demonstrates the tremendous prospectivity of the Stabroek Block, where we continue to see multi billion barrels of additional exploration potential,” CEO John Hess said. “This ninth discovery further enhances our potential to maximize value through rapid phased development.”

Hammerhead-1 is located approximately 13 miles (21 kilometers) southwest of the Liza-1 well and follows previous discoveries on the Stabroek Block at Liza, Liza Deep, Payara, Snoek, Turbot, Ranger, Pacora and Longtail.

These previous discoveries are estimated to contain gross recoverable resources of more than 4 billion barrels of oil equivalent and have established the potential for up to five floating production, storage and offloading (FPSO) vessels producing over 750,000 barrels per day by 2025.

It was outlined that there is potential for additional production from significant undrilled targets and plans for accelerated exploration and appraisal drilling.

A second exploration vessel, the Noble Tom Madden, the statement posited, is due to arrive in Guyana in October to accelerate exploration of high potential opportunities and will commence drilling at the Pluma prospect approximately 17 miles (27 kilometers) from Turbot.

Liza Phase 1, which is expected to begin producing oil by early 2020, will use the Liza Destiny FPSO to produce up to 120,000 barrels of oil per day.

According to Hess, construction of the FPSO and subsea equipment is well advanced. Pending government and regulatory approvals, Liza Phase 2 is targeted for sanctioning by the end of this year. It will use a second FPSO designed to produce up to 220,000 barrels per day and is expected to be producing by mid-2022. A third phase of development, at the Payara Field, is targeted for sanctioning in 2019 and will use an FPSO designed to produce approximately 180,000 barrels of oil per day, with first production as early as 2023.

The Stabroek Block is 6.6 million acres (26,800 square kilometers).

ExxonMobil’s affiliate Esso Exploration and Production Guyana Limited is operator and holds a 45 per cent interest in the Stabroek Block.

Hess Guyana Exploration Ltd. holds a 30 per cent interest and CNOOC Nexen Petroleum Guyana Limited holds a 25 per cent interest.

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Comments

  • Rosaliene Bacchus  On August 31, 2018 at 12:40 pm

    This new find is all over the international news media today. I cannot help thinking about the plight of the Venezuelan people. After all, Venezuela was once recognized as having the world’s largest proven oil reserves. Such oil wealth didn’t save the Venezuelan people. Why do we believe that it will save the Guyanese people?

    Forgive me, but something just isn’t adding up when it comes to the Exxon-Venezuela-Guyana triage.

    • Tony Hickson  On August 31, 2018 at 11:15 pm

      Only a certain demographic and background of people have enriched themselves in Venezuela. I’m a bit surprised that Exxon has proved that Guyana has at least 4 billion barrels of oil offshore, but the teachers are not getting their pay increases while Freddie Kissoon has complained that President Granger tarnished the image of Guyanese by stating in a subtle manner how we only look for a raise but don’t want to work. This is insulting for young Guyanese who struggle to find jobs because honestly there is not that much business going on in GT except for hotels.

      What scares me is that American congressmen and congresswomen are flocking to Guyana in droves to conduct secretive meetings. How hypocritical of America to send foreign NGOs to the Caribbean to foster human rights at the disapproval of the religious grounds, but hide in the shadows and prevent media from enacting their democratic rights.

      And reading posts from Chinese businessmen how they are going to develop very high and very tall skyscrapers in GT makes me wonder if there will be an “expat” invasion, which will result in massive cost-push inflation.

      When I was working at the M&CC, many of those six to nine story buildings were used as shell companies and evade property taxes as the valuations were severely undervalued in some of the fancy high rises. [The CEO of Pegasus had the nerve to complain on national print how his business cohorts should pay lower taxes when he is developing a 15 story hotel and a 7 story gym room for Americans.]

      One specific building was valued at only G$100,000 when the owner (that I’m not legally allowed to name) sold this building for G$95,000,000+.

      This oil is going to fill the coffers of the foreigners, and anyone who dares speak out is going to become targets of America. End of story.

    • alyssa  On September 1, 2018 at 8:19 pm

      All of you need to see a therapist. Exxon is the greatest thing that has ever happened to your country.
      You will no longer walk barefoot and live in mud houses. Exxon will boost your standard of living as your country collects tens of billions of dollars in oil payments.
      One important message I would say to Ghana is that abolish all discriminatory law that is misogynistic and anti-gay.
      Abolish the misogynistic law that prohibits women from her freedom of choice in dress when entering government offices.
      Abolish anti-gay laws which criminalize same-sex relations.
      Allow women and gays to express themselves in public by making Pride Month a public holiday.

      • guyaneseonline  On September 2, 2018 at 2:51 am

        Alyssa:
        GUYANA is not GHANA.
        Maybe this is a typo…. or is that you do not know where GUYANA is.
        You seem more interested in a subject that is not part of this blog entry.
        Come again….. please

      • Emanuel  On September 2, 2018 at 1:04 pm

        We don’t live in mud huts and walk barefooted. And you need to brush up on your geography before you decide to troll.

      • Eduardo Da Silva  On September 2, 2018 at 7:02 pm

        Clifford Krauss or Kimberley Brassington is that you?Don’t make me respond with the largest insult of America which reflects on your moral imposition of your belief systems.

      • Andre L  On September 2, 2018 at 9:57 pm

        https://www.kaieteurnewsonline.com/2018/09/02/the-democratic-white-world-is-disappearing/

        “Today, a non-white person in any country in the White, developed world lives in danger of being harassed. All the White countries in my time as a teenager have now descended into serious autocratic lands, some being semi-fascist, with the exception of Canada.

        But Canada today is not the same place as under Pierre Trudeau. It was shocking to learn that Canada has refused refugee status to four persons from Sri Lanka and the Philippines respectively, who are facing imprisonment in their respective countries for harbouring Edward Snowden when he was held up in Hong Kong.

        Has the entire White, developed world become xenophobic, where non-White people are seen as inferior? The facts are frightening.”

        ———————————–
        God Bless You Frederick Kissoon!

        Alisa’s writings have surely reached the impetus officialism in the 1st world countries. Now we must ask ourselves, if Americans or someone from the 1st world calls us “barefoot” and subtly comments a feeling of racial superiority over us non-whites, do we have anywhere in the world to protect other than our Guyana? Should we welcome affected overseas Guyanese back to Guyana so that they seek refuge from the racists in the 1st world?

        Guyana needs military personnel to defend the borders from Venezuela’s chaotic situation. My suggestion is that immigrants who don’t have rights and are victims of racial bigotry in Canada, USA, UK, etc should not serve the army or police forces of those countries and instead serve the army in their countries of origin.

        Why are we allowing bigots and xenophobes a space to damage the social cohesion, identity and cultural rights of our countries?

        The NYT and Toronto Star would never allow someone from Jamaica or Trinidad to write a letter criticizing the nudity and obscenity at Gay Prides; as a matter of fact, in countries such as Canada and U.K., it’s considered a crime to criticize the Gay Pride communities.

        Many of those who are naked at Gay Pride are old stock Americans or Canadians who walk entirely naked that the soles of their feet are naked as their private parts on display.

        Unfortunately, white women like Alyssa can spew bigotry and impose white supremacy at the same time under the social justice organization called feminist rights and LGBTQ+.

    • Eduardo Da Silva  On September 2, 2018 at 7:13 pm

      I’m afraid for those who live in the interior regions as foreign companies have insisted that Venezuelan-grade crude oil is likely found at North-West of Guyana near the Venezuela border.

      Foreigners only seek to pillage developing countries they are not flocking to Guyana to improve the public schools, hospitals and infrastructure. I fear that South African apartheid will become the rule in Guyana once these expats start landing here in droves, like the day that European “refugees” from a certain religious creed landed at Palestine in the year 1948.

      The United States of America also supports the occupation of Palestine and moved the capital of “The State of Israel”.

      Let’s hope that we don’t become like the Gazans in Palestine or the South Africans before Mandela.

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