Douglas George Blyth Leggate, BofA Merrill Lynch, Research Division - MD and Head of US Oil and Gas Equity Research [9]
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We're going to have plenty of time to talk to Michael here in a second. But unfortunately, we live in a real-time data world. And this morning, one of your European competitors is the share price is down about 25% on...
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John B. Hess, Hess Corporation - CEO & Director [10]
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Yes.
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Douglas George Blyth Leggate, BofA Merrill Lynch, Research Division - MD and Head of US Oil and Gas Equity Research [11]
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The announcement of a result or the testing of the -- the discoveries announced a couple of months back. Heavy oil, (inaudible) tertiary in the next door in Guyana. Is that different from Hammerhead? Can you characterize how it's different? Should the market be concerned about Hammerhead?
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John B. Hess, Hess Corporation - CEO & Director [12]
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No. The market should not be concerned about Hammerhead. We've drilled 3 wells there. Exxon is our operator. We wouldn't have drilled 3 wells, unless we thought we had something commercial. We're not ready to give all the specifics of that. And obviously, we didn't know that block at Tullow has is in board of us. It's closer to the shore. And what we've seen from our block? Remember, our block, Stabroek Block, is 1,150 Gulf of Mexico blocks. It's a massive real estate area. We've gotten 14 successful discoveries, and only 2 dry holes. It's a pretty good success rate. So I think we have a pretty good understanding of the real estate around us.
And as you go onshore, as you go into the shallow waters, hammerhead is an indicator of this. The oil is definitely heavier but what we have there, we have a pretty big tank of oil, and we think that's going to be a commercial development. Plans are going ahead with that. The specifics of that, I can't get ahead of the operator or any plans we would be submitting to the government. But definitely, Hammerhead figures out to be a commercial development for our joint venture.
It doesn't surprise us. Until you drill a well, you really don't know. But in the way the geology of the block works, as you go onshore, as you go in board, the oil tends to get heavier. That's the case with Hammerhead. And so it doesn't surprise me that even more in board, Tullow had a heavier outcome.
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Douglas George Blyth Leggate, BofA Merrill Lynch, Research Division - MD and Head of US Oil and Gas Equity Research [13]
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Heavier, but not heavy.
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John B. Hess, Hess Corporation - CEO & Director [14]
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Heavier outcome. I think the real thing is, the oil that we have at Hammerhead is heavier than Liza and Phase 1, Phase 2 and Payara. Those are about 32 gravity, 0.5% sulfur. Obviously, perfect for the regulations are going to and take effect in January of next year. So Hammerhead is heavier than that. But at the end of the day, it's very much commercial.
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Douglas George Blyth Leggate, BofA Merrill Lynch, Research Division - MD and Head of US Oil and Gas Equity Research [15]
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Just to press you a little bit on this last night. We had the opportunity to take dinner together.
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John B. Hess, Hess Corporation - CEO & Director [16]
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Thank you.
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Douglas George Blyth Leggate, BofA Merrill Lynch, Research Division - MD and Head of US Oil and Gas Equity Research [17]
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I made the point that 3 back-to-back wells are dedicating both exploration vessels to Hammerhead. This be unreasonable for me to think you would do that unless you were looking at potentially a fast track. Suggest that maybe the fourth FPSO could be Hammerhead? I just wonder if you could (inaudible)
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John B. Hess, Hess Corporation - CEO & Director [18]
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Where we are now, Liza 1 is 120,000 barrel a day shift that should come on in December. Exxon has done a fantastic job managing that project. Basically 5 years from the discovery to first oil. It's record setting, quite frankly. And we're very proud and thankful for the job they're doing for the joint venture. And basically, the first ship informs the second and design one, build many has informed the second ship that is also authorized Liza Phase 2, the Liza Unity, the first one is the lease a destiny, that's going to be a 220,000 barrel a day ship. And then the Payara ship that we've already started to spend money on and look once the government have a national election gets in business after March 2. We're pretty confident that Payara will be authorized. So we have already have 3 ships underway for new production, the first being 120, the second 220 and the third 220. Hammerhead is one of the ships that we're considering to be shipped number 4. We're also looking at other appraisal drilling that we're doing basically east of Liza in an area called Turbo. And basically, the -- all these sand channels filled with oil going over to Lisa itself. So what we're trying to do now is appraise that oil to really figure out what the fourth ship or fifth ship are going to be. But we have a high degree of confidence one of those next ships is going to be Hammerhead