Global and Regional MarketsNewsThe Offshore Frontier

Hess sanctions Uaru development offshore Guyana

Hess announced it has made a final investment decision to proceed with Uaru, the fifth development on the Stabroek Block offshore Guyana. Uaru will have a production capacity of approximately 250,000 gross bbl/day of oil with production targeted to startup in 2026.

The $12.7 billion Uaru development will target an estimated resource base of more than 800 million bbls 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,” said Hess CEO John Hess. “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 bbl/dau of oil in Q1 2023. 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 bbl/day of oil. The fourth sanctioned development, Yellowtail, is expected to come online in 2025 with a gross production capacity of approximately 250,000 bbl/day of oil. 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 of oil 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 BOE.

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