<article><p class="lead">The breakeven cost of the recently started giant offshore field in Guyana is currently $35/bl and is set to fall further, US independent Hess' chief executive John Hess said. </p><p>The breakeven cost is for the first floating production, storage and offloading vessel (FPSO), <i>Liza Destiny</i>, Hess, which is a partner to the project, said in an industry keynote address at the <i>Argus</i> Americas Crude Summit in Houston, Texas. </p><p>The breakeven for the second FPSO, the <i>Liza Unity</i>, which will be employed for the second phase of development, will be $25/bl, Hess said today. </p><p>Project operator ExxonMobil is anticipating production from the Stabroek block to reach 120,000 b/d "in the coming months," rising to more than 750,000 b/d by 2025, catapulting sparsely populated Guyana into the upper ranks of oil-producing countries.</p><p>ExxonMobil <a href="http://direct.argusmedia.com/newsandanalysis/article/2058229">increased the estimate for recoverable resources</a> from the deepwater Stabroek block to more than 8bn barrels of oil equivalent (boe) following its 16th oil discovery. </p><p>"With the extra resources that we have just announced, obviously as you look out into the future, we see the upside for more ships and more production," Hess said. "It is going to be low cost, it is going to be high returns." </p><p>ExxonMobil operates the 6.6mn acre (26,800km²) Stabroek field with a 45pc stake. Hess holds 30pc, and the remaining 25pc belongs to Chinese state-owned CNOOC unit Nexen.</p><p class="lead"><i>By Manash Goswami</i></p></article>
