American oil producer, Hess Corporation today reported that it achieved a net income of US$757 million in the second quarter of 2024, compared with net income of US$119 million in the same period last year.
Hess said the increase in adjusted after-tax earnings compared with the prior-year quarter primarily reflects higher production volumes and realized selling prices in the second quarter of 2024.
With respect to exploration and production net income, Hess said this was US$765 million in the second quarter of 2024, compared with US$155 million in the second quarter of 2023. On an adjusted basis, it said exploration and production in the second quarter of 2024 hit a net income of US$817 million, compared with US$237 million in the prior-year quarter.
At the Stabroek Block where Hess has a 30 percent working interest, the company said net production totaled 192,0002 barrels of oil per day (bopd) in the second quarter of 2024, compared with 110,0002 bopd in the prior-year quarter.
The third development on the block, Payara, which commenced production in November 2023, Hess told the market in a statement that it reached its initial production capacity of approximately 220,000 gross bopd in January 2024.
Overall, Hess said Guyana’s net production is forecast to be in the range of 170,000 bopd to 175,000 bopd in the third quarter, reflecting downtime associated with the Liza Destiny and the Liza Unity floating production, storage and offloading vessels. Those ships are expected to undergo lower production rates for a short period of time to facilitate pipeline and field hook-up for the Gas to Energy project, and production optimization work at the Liza Unity.
Referencing other projects, Hess said the fourth development on the block, Yellowtail, was sanctioned in April 2022 with a production capacity of approximately 250,000 gross bopd and first production expected in 2025.
The fifth development, Uaru, was sanctioned in April 2023 with a production capacity of approximately 250,000 gross bopd and first production expected in 2026.
The sixth development, Whiptail, was sanctioned in April 2024 and is expected to add production capacity of approximately 250,000 gross bopd by the end of 2027.
Hess also noted that the application for the environmental permit for the seventh development, Hammerhead, has been filed with Guyana’s Environmental Protection Agency. Pending government and regulatory approval and project sanctioning, the development is expected to have a production capacity in the range of 120,000 gross bopd to 180,000 gross bopd with first oil anticipated in 2029.
