Guyana’s oil will give Hess 10 percent growth rate in a few years despite pandemic

As a result of the economic pains unleashed on oil and gas multinationals and service companies during the COVID-19 pandemic, it is expected that some would take years to recover from the losses sustained. But this is certainly not the case for Hess Corporation which holds a 30 percent stake in the Stabroek Block. According to the company’s Chief Executive Officer (CEO), John Hess, its interest in blocks offshore Guyana, will pave the way for it to see a 10 percent growth rate by 2023. Hess said that at the end of the day, it is the low-cost producer who wins while adding that the best rocks with the best returns will ensure some companies are well positioned for success after the pandemic.

The CEO said, “…We feel that our company with Guyana (which has) probably the largest oil discovery in the last 20 years, a world class resource with low breakevens costs and given our opposition in the Bakken, USA… we think we are in a strong position relative to competitors to provide industry leading cash flow growth.”

Hess added, “…Our cash flow compounds out to 2023 to 10 percent per year while the median of our peers actually decreases 10 percent a year. So we have raised the bar. And again, our 10 percent growth is competitive with big tech firms, big pharmaceutical companies and big consumer companies and so our value is unique…”

While the Stabroek Block consortium which includes ExxonMobil as the Operator and CNOOC/NEXEN, have already chalked up 18 massive discoveries, Hess Corp.’s CEO was keen to note that this is still the early innings for Guyana. The CEO said that Hess continues to see multibillion barrels of future exploration potential remaining on the block. In providing an overview of the Guyana operations, he reminded that Liza Phase One, which is already producing oil, is expected to reach its peak production of 120,000 barrels of oil by month-end. (Kaieteur News)