Global and Regional MarketsNewsThe Offshore Frontier

Hess announces startup of Liza Phase 2 offshore Guyana

Hess Corp announced startup of production from the Liza Phase 2 development on the Stabroek Block offshore Guyana, utilizing the Liza Unity floating production, storage and offloading (FPSO) vessel. The Liza Unity is expected to reach its production capacity of 220,000 gross bbl/day of oil later this year as operations are safely brought online.

The Liza Unity arrived in Guyana in October 2021, following construction in shipyards in China and Singapore. It is moored in water depth of about 1,650 m and will be able to store approximately 2 million bbl of crude oil. The Liza Unity is the world’s first FPSO to be awarded the SUSTAIN-1 notation by the American Bureau of Shipping (ABS) in recognition of the sustainability of its design, documentation and operational procedures.

“We are proud to be a partner in the successful development of this world class oil resource and congratulate ExxonMobil as operator for outstanding project execution,” Hess CEO John Hess said. “We look forward to continuing to work with the Government and the people of Guyana to realize the remarkable potential of the Stabroek Block for the benefit for all stakeholders. The world will need these low cost oil resources to meet future energy demand and help ensure an affordable, just and secure energy transition.”

The Liza Phase 1 development, utilizing the Liza Destiny FPSO, began production in December 2019 and this year its production capacity is expected to increase to more than 140,000 gross bbl/day of oil following production optimization work. The third development on the block at the Payara Field, utilizing the Prosperity FPSO, is on track for production startup in 2024 with a production capacity of approximately 220,000 gross bbl/day of oil. The field development plan and application for environmental authorization have been submitted for government and regulatory review for the fourth development at Yellowtail, with a production capacity of approximately 250,000 gross bbl/day of oil and startup expected in 2025.

At least six FPSOs with a production capacity of more than 1 million gross barrels of oil per day are expected to be online on the Stabroek Block in 2027, with the potential for up to 10 FPSOs to develop the gross discovered recoverable resources currently estimated at more than 10 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 holds 30% interest and CNOOC Petroleum Guyana Limited 25% interest.

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