Hess makes another oil discovery off Guyana

Hess Corp. on Tuesday said it made another oil discovery off the coast of Guyana.

The New York oil and gas company struck oil at its Redtail-1 well, marking the company’s 18th discovery on the Stabroek Block that is expected to contain more than 8 billion barrels of oil and natural gas. Hess said it found 232 feet of oil-bearing sandstone under 6,164 feet of water.

In addition, Hess said it found more oil adjacent to its Yellowtail-1 discovery in a well called Yellowtail-2.

“The Redtail-1 and Yellowtail-2 discoveries further demonstrate the significant exploration potential of the Stabroek Block and will add to the recoverable resource estimate of more than 8 billion barrels of oil equivalent,” CEO John Hess said in a statement.

Hess is drilling in the Stabroek Block, which spans 6.6 million acres off of South America. Hess Guyana Exploration holds a 30 percent interest; Exxon Mobil affiliate Esso Exploration and Production Guyana Limited holds 45 percent interest;and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary fo CNOOC Limited, holds a 25 percent interest in the block.

Oil majors are increasingly developing oil fields off the coast of South America, because they believe they can turn a profit at lower oil prices. Hess, Exxon, Chevron, Total and Apache are some of the companies active in Guyana and nearby Suriname.

Source: MRT

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