Offshore Guyana dominates Hess’ 2020 spending plans

Jan. 28, 2020
Hess has given details of its global 2020 capital and exploratory budget.

Offshore staff

NEW YORKHess Corp. has given details of its global 2020 capital and exploratory budget.

The company will allocate $450 million toward exploration and appraisal wells on the Stabroek and Kaieteur blocks offshore Guyana (Hess 30% and 15%, respectively) and two exploration wells in the Gulf of Mexico.

It will release further funds for seismic acquisition and processing of data off Guyana, Suriname, and the deepwater Gulf of Mexico, and for license acquisitions.

Field development plans include $100 million associated with the Liza Phase 1 project offshore Guyana, which delivered first oil in December 2019; $400 million for the Liza Phase 2 development, with first production expected by mid-2022; $360 million to progress plans for the Payara field development elsewhere in the Stabroek block where production could begin in 2023; and additional funds for front-end engineering and design work for future developments.

Finally, the company is setting aside $170 million for production activities at the North Malay Basin project (Hess 50%, operator) and the Malaysia/Thailand Joint Development Area project (50%) in the Gulf of Thailand.

Hess expects to spend $135 million for production operations in the deepwater US Gulf of Mexico, including the Esox-1 tieback (57.14%, operator).