Page 10 - LatAmOil Week 37 2021

LatAmOil GUYANA LatAmOil

The CEO did not say when ExxonMobil and its Hess Guyana Exploration, with 30%; and China
partners might select their next development National Offshore Oil Corp. (CNOOC), with
targets. They brought the first project, Liza-1, 25%. The partners made their first discovery
on stream in December 2019 and are due to at Liza in 2015 and have made more than 20
launch the second, Liza-2, early next year. The additional finds over the last six year. They now
third development project will be Payara, which estimate the block’s recoverable reserves at more
is slated to begin production in 2024, followed than 9bn barrels of oil equivalent (boe). ™
by Yellowtail, the fourth in 2025. (Longtail and
Uaru/Mako have both been mentioned as can-
didates for the fifth project, but no decision has
been made yet.)
Speaking during the same webcast, Hess’
COO Greg Hill expressed enthusiasm about the
Yellowtail project, saying that this fourth target
would be drawing on a larger resource base than
Liza-1, Liza-2 or Payara. “[We’re] pretty excited
about the overall economics of Yellowtail and
also the size of the reservoir that it’s going to
develop,” he commented.
Hill also drew attention to ExxonMobil’s
plan for drilling its first dedicated well to test
deep-lying reserves at the Fangtooth section of
Stabroek in the fourth quarter of 2021, saying
that the partners hoped to find large volumes of
oil at the site. The outcome of this drilling pro-
gramme “will be a real key piece of data,” he said.
“Fangtooth, if it’s big enough, could potentially
be a stand-alone hub on its own,” he added.
ExxonMobil has said that Stabroek may yield
as much as 1mn barrels per day of oil by the end
of the decade. Liza-1 is already capable of pro-
ducing 120,000 bpd, while Liza-2 and Payara
are expected to yield 220,000 bpd each. Yellow-
tail’s output is anticipated to reach 250,000 bpd,
and the fifth and sixth development projects are
likely to contribute at least 220,000 bpd apiece.
Equity in the Stabroek project is split between
ExxonMobil Guyana, the operator, with 45%; Whiptail and Pinktail may be developed together, Hess says (Image: Hess)

BRAZIL
NFE, Norsk Hydro finalise terms of LNG

supply deal for alumina refinery in Brazil

NEW Fortress Energy (NFE)announced last to natural gas as part of its global commitment
week that it had finalised the commercial terms to reduce its greenhouse gas (GHG) emissions
of a deal with a Norsk Hydro subsidiary to sup- by 30% by 2030. The fuel switch is anticipated
ply natural gas to the Alunorte alumina refinery to reduce the refinery’s carbon dioxide (CO2)
in Pará, Brazil. The gas will be supplied from emissions by 600,000 tonnes per year (tpy).
NFE’s Barcarena LNG receiving and regasifica- “This is a great example of how our LNG
tion terminal, which is also in the state of Pará. terminals can accelerate the energy transition
Under the terms of the 15-year agreement, in Brazil,” said Wes Edens, NFE’s chairman and
NFE will supply Hydro with 29.5 trillion British CEO.
thermal units of natural gas per year, equivalent Hydro’s executive vice-president for bauxite
to roughly 1mn gallons (3.8mn litres) per day and alumina, John Thuestad, described the fuel
of LNG. The deal comes as Hydro converts the switch to LNG as “another step to improve our
calcination process and part of the steam gen- operations, driving sustainability and industry
eration at the Alunorte refinery from fuel oil best practices to lower environmental impact.”

P10 www. NEWSBASE .com Week 37 16•September•2021