Guyana, Bakken bets are paying off for Hess

HOUSTON – Focusing on offshore Guyana and Bakken shale opportunities is paying off for Hess, who foresee significant production expansion in the coming years.

“Our production is now expected to come in at the upper end of our full year guidance range, while our capital and exploratory expenditures are projected to come in below our original full year guidance,” Chief Executive Officer John Hess said in the company’s Q2 2019 earnings release.  “Our portfolio is on track to generate industry-leading cash flow growth.”

Hess raised its estimated gross recoverable reserves to more than 6 Bboe Offshore Guyana, based on positive discovery results in the 30%-owned Starbroeck Block.  This growing resource base demonstrates potential for at least five FPSOs, producing more than 750,000 gross bopd by 2025.

The Liza Destiny FPSO, with a capacity to produce up to 120,000 gross bopd, is expected to arrive on the Stabroek Block in September 2019; first oil from Liza Phase 1 is expected by the first quarter of 2020.  Hess also sanctioned the second phase of development of the Liza Field; Phase 2 will utilize the Liza Unity FPSO, which will have a capacity to produce up to 220,000 gross bopd with first oil expected by mid-2022.

In the Bakken shale play, net production increased 23% from the prior-year quarter, to 140,000 boepd, based on increased drilling activity and improved well performance.  Hess operated six rigs in the Bakken in the second quarter, drilling 39 wells and bringing 39 new wells online.