There are now more than six billion barrels of oil equivalent in the Stabroek Block, Hess Corporation, a partner with ExxonMobil Guyana, disclosed on Wednesday.

In reporting estimated results for the second quarter of 2019, Hess Chief Executive Officer John Hess disclosed that the oil equivalent estimate has been increased.

“In Guyana, we have just increased the estimate of gross discovered recoverable resources for the Stabroek Block to more than 6 billion barrels of oil equivalent and continue to see multibillion barrels of additional exploration potential,” Hess said. Earlier in the year, ExxonMobil had indicated that there were approximately 5.5 billion barrels of oil equivalent recoverable resources in the Stabroek Block.

He noted that the company’s portfolio is on track to generate industry leading cash flow growth and increasing returns to shareholders. In its report, Hess also took note of the fact that in the Stabroek Block, for which it owns 30 percent, the second phase of development at the Liza Field was sanctioned by the partners following regulatory approval from the government of Guyana.

“Liza Phase 2 will utilise the Liza Unity FPSO, which will have the capacity to produce up to 220,000 gross bopd. Six drill centers are planned with a total of 30 wells, including 15 production wells, nine water injection wells and six gas injection wells. First oil is expected by mid-2022. The development is expected to have a gross capital cost of approximately $6 billion, including a lease capitalization cost of approximately $1.6 billion for the FPSO, and will develop approximately 600 million barrels of oil,” Hess explained.

Excluding pre-sanction and lease costs, Hess’ net share of development costs is forecast to be approximately $1.6 billion, of which $210 million is included in its 2019 capital and exploratory budget. Importantly, the oil company noted that Liza Phase 1 remains on track to achieve first oil by the first quarter of 2020. “It will produce up to 120,000 gross bopd at peak rates utilising the Liza Destiny FPSO, which is expected to arrive offshore Guyana in September 2019,” Hess said while noting that planning is underway for a third phase of development at the Payara Field, which is expected to produce between 180,000 and 220,000 gross bopd with first oil as early as 2023.