HOUSTON -Hess Corp. recently reported operational highlights for 2Q 2014. Its Valhall field, offshore Norway, had a net production average of 31,000 boe/d, compared with 13,000 boe/d in the year-ago quarter. This increase in output is due to completing the redevelopment project that commenced on the field in 2013, with ongoing drilling and higher uptimes, the operator pointed out. In June, offshore work began on the Crestal Gas Lift Project (phase 1) with hook-up, and commissioning expected in 2Q 2015.
The company’sNorth Malay basin, offshore Malaysia, had an average production rate of 7,000 boe/d in 2Q 2014 from the early production system. Field development is ongoing with Hess signing a gas sales agreement with the Malaysian government, and then awarding a contract for the construction and installation of a central processing platform, a bridge-linked wellhead platform, and three remote wellhead platforms.
Offshore Ghana, Hess commenced drilling of a three-well appraisal program in 2Q 2014. The first well of the drilling program, Pecan No. 2A, was completed in June and the second well, Pecan No. 3A, was drilled and is currently undergoing production testing, as planned. Hess will drill the third well in the third quarter.
In theGulf of Mexico, Hess performed hook-up and commissioning activities on the Tubular Bells field in 2Q 2014, with first oil from the field slated for September 2014. The company also commenced drilling of a fourth production well in the second quarter.
Hess also received US government approval to unitize blocks 468, 512 and the eastern half of 511, which contains the Stampede project, containing the Knotty Head and Pony developments. Knotty head is located in GC 512 and was discovered in 2005; Pony is located in block GC 468 and was discovered in 2006. Gross recoverable reserves have been estimated between 200 and 500 MMboe. The project continues to progress, Hess stated, with project sanction expected later this year.
Last year, Hess awardedWood Group Mustang a front-end engineering and design contract for the StampedeTLP, which will be installed in 3,500 ft (1,067 m) of water. The TLP is capable of producing oil and water at a rate of 80,000, and 60,000 b/d. The facility will also be able to produce gas at a rate of 120 MMcf/d.