Guyana oil production drops 11% due to maintenance, Hess says

(Bloomberg) -- Guyana’s oil output dropped 11% in the third quarter as Exxon Mobil Corp. temporarily shut down two of its three production vessels to connect a new gas-to-shore pipeline.

Hess Corp., which has a 30% stake in Guyana’s Stabroek Block, said its share of production dropped to 170,000 bpd in the period, compared with 192,000 bpd in the prior quarter. Production should bounce back in the fourth quarter, “reflecting recovery from planned downtime,” Hess said.

Hess raised its 2024 capital spending guidance to $4.9 billion, up from $4.2 billion previously, “reflecting the decision to accelerate the purchase” of two floating production, storage and offloading (FPSO) vessels to the fourth quarter instead of 2025, it said.

Exxon, which owns a 45% stake in Stabroek, is likely to report a similar drop in production and increase in Guyana spending when it reports earnings on Nov. 1. The oil major has already guided that lower oil prices and refining margins will reduce earnings in the third quarter.