NEW YORK, CMC – On Tuesday, the US-based oil and gas company Hess Corporation announced a 2023 Exploration & Production capital and exploratory budget of US$3.7 billion, of which more than 80 percent will be allocated to Guyana and the Bakken.
It said net production is forecast to average between 355,000 and 365,000 barrels of oil equivalent per day in 2023. Bakken net production is forecast to standard between 165,000 and 170,000 barrels of oil equivalent per day, and Guyana’s net production is forecast to average approximately 100,000 barrels of oil per day in 2023
“Our capital program reflects continued execution of our strategy to invest only in high return, low-cost opportunities within our portfolio,” said John Hess.
“More than 80 percent of our 2023 budget is allocated to Guyana, which is positioned to be one of the highest margin, lowest carbon intensity oil developments in the world, and to the Bakken, our largest operated asset where we have a robust inventory of high return future drilling locations.”
The chief operating officer, Greg Hill, said, “in the Bakken, we plan to operate a four-rig program, which will enable us to maximize free cash flow generation, optimize our in-basin infrastructure and drive further reductions in our unit cash costs.
“In Guyana, our focus in 2023 will be on advancing our high-value oil developments and continuing an active exploration and appraisal program on the Stabroek Block,” Hill added.
According to Hess, the US$3.7 billion budget is allocated as follows: $1.45 billion (39 percent) for production, $1.7 billion (46 percent) for offshore Guyana developments, and US$550 million (15 percent) for exploration and appraisal activities.”
Hess said that US$90 million had been allocated to the Liza Phase 1 and Phase 2 developments on the Stabroek Block offshore Guyana, which are currently operating at a combined gross production capacity of more than 360,000 barrels equivalent per day (boepd).
It said US$1.21 billion would be used for the developments on the Stabroek Block at Payara, Yellowtail, and Uaru.
“Payara is on track to come online by the end of 2023 with a gross production capacity of approximately 220,000 bopd. Yellowtail is expected to come online in 2025 with a gross production capacity of approximately 250,000 bopd. Uaru is expected to come online at the end of 2026 with a gross production capacity of approximately 250,000 bopd.”
The company said US$150 million had been allocated for the Gas to Energy project, with the first gas expected by year-end 2024. That US$$250 million was primarily for front-end engineering and design work for future development phases on the Stabroek Block.
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