Hess Corp. will allocate some 75% of its $2.9-billion 2019 exploration and production capital and expenditure budget to high-return growth assets in the Bakken and in Guyana.
Net production is forecast to average 270,000-280,000 boe/d in 2019, excluding Libya, compared with 245,000 boe/d in 2018 proforma for the sale of the company’s joint venture interests in the Utica shale play. Bakken net production is forecast to average 135,000-145,000 boe/d in 2019.
Production will account for 65% of the company’s capex for 2019, while 20% will go to offshore developments, and 15% is earmarked for exploration and appraisal activities.
Regarding production activities, Hess budgets the following:
• $1.425 billion to fund an increase to 6 rigs from an average of 4.8 rigs in 2018, and the shift to higher intensity plug and perf wells in the Bakken. The company expects to drill 170 wells and to bring online 160 wells in 2019. Funds are also included for investment in non-operated wells.
• $290 million for production in the deepwater Gulf of Mexico, including continued development of Stampede field (Hess-operated, 25%) and tieback opportunities at Llano field (Hess, 50%) and Tubular Bells field (Hess-operated, 57%).
• $150 million for production activities in the Gulf of Thailand at North Malay basin (Hess-operated, 50%) and the Malaysia/Thailand Joint Development Area (Hess, 50%).
Hess has budgeted its development, exploration, and appraisal projects as follows:
• $260 million associated with the Liza Phase 1 development offshore Guyana (Hess, 30%), where first production is expected by 2020.
• $310 million includes spend for Liza Phase 2 development, completing the plan of development for Payara, and front-end engineering and design work for future development phases.
• $440 million to drill exploration and appraisal wells on the Stabroek Block offshore Guyana (Hess, 30%). Funds are also included for seismic acquisition and processing in Guyana, Suriname, and the deepwater Gulf of Mexico, as well as for license acquisitions.
