Offshore staff
NEW YORK – Hess Corp. has reported an exploration and production capital and exploratory budget of $2.6 billion for 2022.
Of this about 80% will be allocated to Guyana and the Bakken.
The $2.6-billion budget is allocated as follows: $1.150 billion (44%) for production, $1 billion (39%) for offshore Guyana developments, and $450 million (17%) for exploration and appraisal activities.
The company forecasts net production to average between 330,000 and 340,000 boe/d in 2022, excluding Libya.
It has allocated $270 million for production activities at North Malay Basin (Hess 50% and operator) offshore Peninsular Malaysia and the Malaysia/Thailand Joint Development Area (Hess 50%) in the Gulf of Thailand. Funds are included for drilling and facilities and for work that was previously deferred due to COVID-19 and low commodity prices.
Also, $90 million is for production activities in the Gulf of Mexico, including drilling one tieback well at the Llano field (Hess 50%) and seismic acquisition and processing.
As for the field developments on the Stabroek block offshore Guyana, the company has allocated $25 million for Liza Phase 1; $190 million for Liza Phase 2, with first production expected in 1Q; $400 million for Payara; $210 million for Yellowtail; and $175 million primarily for front-end engineering and design work for future development phases.
In addition, it has allotted $450 million to drill about 12 exploration and appraisal wells on the Stabroek block (Hess 30%), the Huron-1 well in the Green Canyon area of the Gulf of Mexico (Hess 40%), and the Zanderij-1 well on block 42 offshore Suriname (Hess 33%). Funds are also included for seismic acquisition and processing in Guyana, Suriname, and the deepwater Gulf of Mexico, and for license acquisitions.
CEO John Hess said: “Our capital program reflects our continued discipline in investing in high return, low cost opportunities within our portfolio. The majority of our 2022 budget is allocated to Guyana, which is positioned to be one of the highest margin, lowest carbon intensity oil developments in the world.”
COO Greg Hill added: “In Guyana, our focus in 2022 will be on advancing our high value oil developments on the Stabroek block, which have a Brent breakeven oil price of between $25 and $35 per barrel, and continuing our active exploration and appraisal program.”
01/25/2022
