Hess Earnings Call Q 1 2022 (April 27 2022)
*Hess says Payara now scheduled for first oil in “late 2023” compared to previous target 2024. This will help further to drive down overall cash costs for company.
*Q1 production for Guyana was 30K B/D; Q2 est 70-75K B/D; Q4 85-90 B/D and Full Year remains at 65-70 B/D.
*Sees seven Guyana lifts in Q2, 8 each in Q3/4 as Lisa Phase 2 will ramp up to 220K by Q3.
*Is sticking with estimate of 1M B/D by 2026/7 although in variance with Exxon forecasts. “They will address that”
*Yellowtail ($10 B cost) has $29 breakeven cost, bigger ship, more wells for 920M barrel resource; has not seen a whole lot of inflation for construction. It’s more scale and it is on track for 2025. Hull is complete and floating in Indonesian waters waiting for Payara to leave Singapore.
*Uaru FD plan will be submitted to govt by year end
*”Very pleased” with latest exploration results: 230ft Barreleye is an indication of how massive this accumulation is in Guyana. All five discoveries this year have contributed towards extra 1B Boe
*Exploration wells (12) this year include Seabob 10miles south of Yellowatol and Kiru (?) three miles south of Cataback.
*Hess and partners have “excellent working relations with the government”, early April approval of Yellowtail being an example. The government has been very clear they want partners to accelerate development of resources to the benefit of “all Guyanese”.
Hess sees capex inflation increasing about 3-4% in 2022