MOSCOW (MRC) -- Hess Corp expects to produce more than 1 MM gross barrels of oil per day (bpd) in Guyana by 2027 from at least six production units, reported Reuters with reference to the US oil producer's statement on Wednesday.
The projection comes shortly after a second floating production system arrived in the South American country's waters.
Hess added that it sees potential for up to 10 floating systems to develop the discovered resources on the block. ExxonMobil had previously said it expects to have five units in operation in Guyana by 2026 and sees a potential for a total of seven to 10 units.
Hess Chief Executive Officer John Hess also said the fourth development on the block, the Yellowtail project, was envisioned to have a gross capacity of about 250,000 bpd, with first oil expected in 2025.
The plans for the Yellowtail development was recently submitted to the government of Guyana for approval, the company added in a post-earnings conference call with investors and analysts.
The company, on the call, declined to provide final numbers on cost or wells planned, but added that breakeven for Yellowtail, even with some cost increases, would firmly be in the USD25 to USD32 per barrel range.
Higher production from Guyana, considered a growth engine for Hess, also helped the company offset output declines in North Dakota's Bakken and Gulf of Mexico.
Gross production from the Liza Phase I complex averaged 124,000 bpd in the third quarter, with the Liza Phase II development on track for start-up in early 2022 with a gross production capacity of 220,000 bpd.
Hess said the third development on the Stabroek Block at the Payara field is on track to achieve first oil in 2024, also with a gross capacity of 220,000 bpd.
The company said it expects to spend about USD1 B in Guyana in 2022, about USD250 MM more than this yr.
We remind that, as MRC reported earlier, ExxonMobil plans to build its first, large-scale plastic waste advanced recycling facility in Baytown, Texas, and is expected to start operations by year-end 2022. The new facility follows validation of ExxonMobil’s initial trial of its proprietary process for converting plastic waste into raw materials. To date, the trial has successfully recycled more than 1,000 metric tons of plastic waste, the equivalent of 200 million grocery bags, and has demonstrated the capability of processing 50 metric tons per day.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.