NEW YORK – Hess has budgeted $2.1 billion for global E&P exploration and production this year, unchanged from 2017.
While the company has allocated a higher sum to exploration and development activities offshore Guyana, this is offset by a lower capital allocation to the Gulf of Mexico and offshore Malaysia.
Hess plans to spend $375 million on exploration and appraisal activities, comprising further wildcat and appraisal wells on the deepwater Stabroek block offshore Guyana (Hess 30%); one exploration well on block 42 in Suriname (33%); and one exploration well offshore Nova Scotia (50%).
The company has also budgeted for seismic acquisition and processing and for license acquisitions
Its $555-million budget for offshore developments comprises $250 million for with the Liza Phase 1 development offshore Guyana, where development drilling is due to begin during Q2 2018, followed by first production by 2020; $65 million for front end engineering and design work for future development phases and capitalized interest in Guyana; and $240 million for continued development of the Stampede Field in the deepwater Gulf of Mexico (Hess 25%, operator), which is on track to start up later in the current quarter.
As for offshore production, Hess has earmarked $175 for activities at its North Malay basin project (Hess 50%, operator) and the Malaysia/Thailand Joint Development Area (50% in the Gulf of Thailand; and $95 million for production operations in the deepwater Gulf of Mexico and production operations at the South Arne field in the Danish North Sea – in this case, the company is looking to complete a sale of its 61.5% operated interest.