Page 4 - LatAmOil Week 44 2020

LatAmOil COMMENTARY LatAmOil

Changes afoot for Stabroek

ExxonMobil and its partners are dealing with an increase in their resource estimate,

talks with the government on gas pricing and changes in their environmental permits

THE US super-major ExxonMobil and its part- about the project. Last week, Hess, a non-oper-
ners in the Stabroek block offshore Guyana ating partner, revealed that the partners had
WHAT: – Hess, a US-based independent, and China determined that the block held even more oil
According to Hess, National Offshore Oil Corp. (CNOOC) – have than previously anticipated.
Stabroek appears to con- had a busy week. According to John Hess, the company’s CEO,
tain 9bn boe, not 8bn boe They have issued a revised reserve estimate Hess and the other shareholders in Stabroek
as previously estimated. for the block, and they have continued talks with have raised their resource estimate from 8bn
Guyana’s government on a gas-to-power project. barrels of oil equivalent to 9bn boe. During
WHY: Additionally, they have agreed to bring the envi- a conference call with shareholders, Hess
The larger resource esti- ronmental permit issued for Liza-1, the first sec- described this upward revision as justified in
mate will lead to changes tion of the licence area to begin producing crude light of the new discoveries made at three addi-
in development plans. oil, into compliance with Guyanese law. tional sections of the block – Uaru, Redtail and
This essay will describe these developments Yellowtail-2 – earlier this year. He also noted that
WHAT NEXT: and speculate about their implications for the these three finds had brought the total number
Environmental issues future of the Stabroek project. of discoveries made thus far at Stabroek up to 18.
are set to play a more Hess made his enthusiasm for the project
important role in the
consortium’s dealings New reserve estimate clear, pointing out that the block would be able
with the government. ExxonMobil may be the operator of Stabroek, to support more extensive development opera-
but it is not always the source of new information tions than initially planned.

P4 www. NEWSBASE .com Week 44 05•November•2020