NEW YORK – Hess Corp. has reported an E&P capital and exploratory budget of $1.9 billion for 2021.
Of this more than 80% will be allocated to Guyana and the Bakken.
The $1.9-billion budget is allocated as follows: $670 million (35%) for production, $780 million (41%) for offshore Guyana developments, and $450 million (24%) for exploration and appraisal activities.
The company forecasts net production to average about 310,000 boe/d in 2021, excluding Libya.
It has allocated $165 million for production activities at North Malay Basin (Hess 50% and operator) and the Malaysia/Thailand Joint Development Area (Hess 50%) in the Gulf of Thailand.
For developments on the Stabroek block offshore Guyana, the company has allocated:
- $25 million for the Liza Phase 1 development (Hess 30%), where production reached nameplate capacity of 120,000 gross b/d of oil in December 2020.
- $450 million for the Liza Phase 2 development with a capacity of up to 220,000 gross b/d of oil with first production expected in early 2022.
- $235 million for the Payara development with a capacity of up to 220,000 gross b/d of oil, with first production expected in 2024.
- $70 million primarily for front-end engineering and design work for future development phases.
In addition, the company has allocated $450 million to drill 12-15 exploration and appraisal wells on the Stabroek block in Guyana (Hess 30%). Funds are also included for well planning on block 42 in Suriname (Hess 33.3%), seismic acquisition and processing in Guyana, and the deepwater Gulf of Mexico and for license acquisitions.
CEO John Hess said: “The majority of our 2021 budget is allocated to Guyana, where our three sanctioned oil developments have a Brent breakeven oil price of between $25 and $35 per barrel…”