Hess allocates 80% of 2021 E&P budget to Guyana, Bakken

Jan. 25, 2021
Hess Corp. plans to allocate more than 80% its $1.9 billion 2021 exploration and production capital program to Guyana developments and a two-rig Bakken program.

Hess Corp. plans to allocate more than 80% its $1.9 billion 2021 exploration and production capital program to Guyana developments and a two-rig Bakken program.

Net production is forecast to average 310,000 b/d of oil in 2021, excluding Libya. Bakken net production is forecast to average 170,000 boe/d in 2021. The forecast includes the impact of operating a two rig program beginning in this year’s first quarter and a planned 45-day turnaround and expansion tie-in at the Tioga Gas Plant in the third quarter, which is expected to reduce full year 2021 Bakken net production by 7,500 boe/d.

The $1.9 billion budget is allocated as follows: $670 million (35%) for production, $780 million (41%) for offshore Guyana developments and $450 million (24%) for exploration and appraisal activities.

Production

  • $450 million to fund a two-rig program in the Bakken. The company expects to drill 55 gross operated wells and to bring online 45 wells in 2021. Funds are also included for investment in non-operated wells.
  • $165 million for production activities at North Malay Basin (Hess 50% and operator) and the Malaysia-Thailand joint development area (Hess 50%) in the Gulf of Thailand.

Developments

  • $25 million associated with the Liza Phase 1 development on the Stabroek block in Guyana (Hess 30%), where production reached nameplate capacity of 120,000 gross b/d of oil in December 2020.
  • $450 million for the Liza Phase 2 development with a capacity of up to 220,000 gross b/d of oil, with first production expected in early 2022.
  • $235 million for the Payara development with a capacity of up to 220,000 gross b/d of oil, with first production expected in 2024.
  • $70 million primarily for front end engineering and design work for future development phases on the Stabroek block.

 Exploration and appraisal

  • $450 million to drill 12-15 exploration and appraisal wells on the Stabroek block. Funds are also included for well planning on Block 42 in Suriname (Hess 33.3%), seismic acquisition and processing in Guyana and the Deepwater Gulf of Mexico, and for license acquisitions.