Hess Corporation recently made its final investment toward its fifth development on the Stabroek Block, Uaru, a press release reported. The transaction was confirmed soon after the company received government and regulatory approvals.
“We are excited to sanction Uaru, our fifth oil development on the Stabroek Block,” CEO John Hess said. “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.”
Uaru’s production is scheduled to start in 2026, with capacity expected to reach 250,000 gross barrels of oil per day. Valued at $12.7 billion, the Uaru development, consisting of 10 drill centers and 44 production and injection wells, is expected to focus on a resource base of more than 800 million barrels of oil.
MODEC will contribute the construction of Errea Wittu, a floating production, storage and offloading (FPSO) vessel for Uaru, signed through an Engineering, Procurement and Construction (EPC) contract.
During the first quarter, the Liza Phase 1 and Liza Phase 2 developments produced approximately 375,000 gross barrels of oil per day.
An additional sanctioned development, Payara, is scheduled to begin during the fourth quarter with a predicted gross production capacity of 220,000 barrels of oil per day. Yellowtail is projected to start up in 2025 and Whiptail is scheduled to be submitted for government and regulatory approval later this year. The Stabroek Block spans 6.6 million acres.
The company expects to launch a total of six FPSOs with an estimated gross production capacity of more than 1.2 million barrels of oil per day 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 barrels of oil equivalent,” a recent press release confirmed.
ExxonMobil affiliate Esso Exploration and Production Guyana Limited will serve as operators, acquiring a 45% interest in the Stabroek Block, while a 30% interest, Hess Guyana Exploration Ltd. and CNOOC Petroleum Guyana Limited holds 25%.