Majority of US$3.7B Hess budget for oil projects in Guyana, US basin

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United States (US) oil giant Hess Corporation plans to spend some US$3.7 billion on exploration and production in 2023 and most of the sum will be spent on projects in Guyana and the Bakken area in the US.

Projects in Guyana and Bakken were also the focus of the company’s US$2.6 billion budget in 2022.

“More than 80% of our 2023 budget is allocated to Guyana, which is positioned to be one of the highest margin, lowest carbon intensity oil developments in the world and to the Bakken, our largest operated asset where we have a robust inventory of high return future drilling locations,” the company’s Chief Executive Officer John Hess said in a press release on Tuesday.

Overall, some US$1.7 billion, or 46 per cent of the Hess budget, will be spent on offshore Guyana developments.

Providing a breakdown of its spending in Guyana, the company allocated US$90 million to the Liza Phase 1 and Liza Phase 2 developments in the prolific offshore Stabroek Block. Production is ongoing at these blocks.

Hess is a co-venturer in this block while Esse Exploration Production Guyana Limited (EEPGL), the local ExxonMobil subsidiary, is the operator.

Additionally, US$1.2 billion will be spent on developments at Payara, Yellowtail and Uaru projects in the Stabroek Block.

A further US$250 million will be spent on front end engineering and design work for future development phases in the Stabroek Block.

And finally, US$150 million will be invested in the forthcoming Gas-to- Energy project at Wales, West Bank Demerara (WBD).

Outside of the developments in Guyana, significant sums will be invested in production activities in the Bakken and other oil projects elsewhere.

Some $550 million will be invested in drilling activities at 10 exploration and appraisal wells on the Stabroek Block, two wells in the Gulf of Mexico and one well in Newfoundland, Canada.

Funds are also included for seismic acquisition and processing in Guyana, Suriname and the deepwater Gulf of Mexico, Hess said in its press release.

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