Hess Corporation, one of the licenced partners on the oil rich Stabroek block, released today its 2021 exploration and production budget which totals US$1.9 billion. More than 80% would be allocated to Guyana and the Bakken, USA.
According to the company’s financial statements which were perused by this news agency, net production is forecast to average approximately 310,000 barrels of oil equivalent per day in 2021, excluding Libya. With respect to Bakken net production, Hess said this is forecast to average approximately 170,000 barrels of oil equivalent per day in 2021. This forecast includes the impact of operating a two rig programme beginning in the first quarter and a planned 45-day turnaround and expansion tie-in at the Tioga Gas Plant in the third quarter, which is expected to reduce full year 2021 Bakken net production by approximately 7,500 barrels of oil equivalent per day.
Chief Executive Officer (CEO), John Hess was keen to note that the company’s capital programme for 2021 reflects its disciplined approach in the current oil price environment to preserve cash, core capabilities and the long term value of its assets. 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 US$25 and US$35 per barrel, and to the Bakken, where we have a large inventory of future drilling locations that generate attractive financial returns at current prices.”
By investing only in high return, low cost opportunities, the CEO said that Hess has been able to build a differentiated portfolio of assets which it believes will provide industry leading cash flow growth over the course of the decade.
As for Chief Operating Officer, Greg Hill, he reported to shareholders today that in the Bakken, Hess’ plans to add a second rig during the first quarter, which will allow the company to sustain production and cash flow generation from this important asset.
Offshore Guyana, he said that the company’s focus in 2021 will be on advancing to the next two sanctioned developments to first oil – Liza Phase 2 in early 2022 and Payara in 2024 – and on front end engineering and design work for future development phases on the Stabroek Block. He said that Hess will continue to invest in an active exploration and appraisal programme with 12-15 wells planned on the Stabroek Block.
