Hess Corp. will allocate 80% of its $3.7-billion capital and exploratory budget this year to Guyana developments and a four-rig drilling program in the US Bakken shale.
Net production is forecast to average 355,000-365,000 boe/d in 2023. Bakken net production is forecast to average 165,000-170,000 boe/d and Guyana net production is forecast to average about 100,000 b/d of oil this year.
Of the $3.7 billion, $1.45 billion (39%) is allocated for production. About $1.1 billion is expected to fund a four-rig program in the Bakken where the company expects to drill 110 gross operated wells and to bring online 110 wells in 2023. Funds are also included for investment in non-operated wells.
Some $225 million is earmarked for production activities at North Malay basin (Hess-operator, 50%) offshore Peninsular Malaysia and the Malaysia-Thailand joint development area (Hess, 50%) in the Gulf of Thailand.
Another $125 million is allocated for production activities in the Gulf of Mexico, including drilling two tieback wells and seismic acquisition and processing.
Development activities are expected to cost $1.7 billion (46%) in 2023, comprised of work offshore Guyana, where $90 million is allocated to Liza Phase 1 and Phase 2 developments on the Stabroek block (Hess, 30%). The developments are currently operating at a combined gross production capacity of more than 360,000 b/d of oil.
About $1.21 billion is expected to go toward Stabroek block developments at Payara, Yellowtail, and Uaru. Payara is on track to come online by end0-2023 with a gross production capacity of about 220,000 b/d of oil. Yellowtail is expected to come online in 2025 with a gross production capacity of 250,000 b/d of oil, and Uaru is expected to come online end-2026 with a gross production capacity of about 250,000 b/d of oil.
Some $150 million will be earmarked for the gas to energy project offshore Guyana with first gas expected by yearend 2024, and $250 million will go primarily for front end engineering and design work for future development phases on Stabroek block (OGJ Online, Aug. 1, 2022).
The remaining $550 million will be used to drill about 10 exploration and appraisal wells on Stabroek block, two wells in the Gulf of Mexico, and one well offshore Newfoundland, Canada. Funds are also included for seismic acquisition and processing in Guyana, Suriname, and the deepwater Gulf of Mexico.
