Q2-2021 - HESS EARNINGS CALL Fantastic call from Hess - Guyana remains their crown jewel asset to deliver long term value to shareholders "in any oil price scenario".
* Whiptail-1 and Whiptail-2 announced today as commercial discoveries and underpin another potential standalone future development. Reservoir conditions - "outstanding". Drilling on both wells continue to test deeper prospects / pay.
* Uaru and Maka discoveries appear to pegged for another standalone commercial development that is being planned by Stabroek venture group. Tentatively set to be sanctioned after Yellowtail development.
* Stabroek venture group reinforced earlier guidance of sanctioning one major development every year. Current line of sight to sanction 10 standalone large FPSO developments (220k-250k per day). Once Liza II comes online - production from Liza I and Liza II will fund remaining developments.
* All field developments are expected to have a long production life cycle. Much longer than your typical deepwater development production life cycle. Resource density around planned development hubs supports eventual tie back of other undeveloped nearby (new) resources in either the Santonian or Campanian. Proceeding with developing infrastructure to sustain development period for a "very" long time.
* Additional near term exploration campaigns include Fangtooth, Cataback, and Pinktail. Hess will test deeper play targets. In terms of testing the deeper plays, Hess is talking about the bottom of the Campanian and lower Campanian and then down into the Santonian. These deeper horizons have the potential to be a very large addition to the recoverable resource base. Hess has had eight penetrations to-date in the deeper plays. Given recent exploration success in Suriname, Hess is excited to see just how prolific the lower Campanian and Santonian intervals are in the Stabroek license. Thus far, with a few number of penetrations in the deeper horizon, the Stabroek venture group is encouraged. However, a lot more exploration drilling is required to fully understand that potential of the deeper plays.
* Suriname Block 42 exploration drilling will commence in early 2022. Block 59 exploration drilling could occur in 2023.