Hess Corporation, one of the United States (US) oil companies with a stake in the prolific Stabroek Block offshore Guyana, announced that it earned US$119 million in the second quarter of 2023 following increased oil production in Guyana and the US Bakken area.
Though producing more barrels of oil, the company recorded a lower income compared to last year.
This year’s second quarter earnings totalled US$119 million, or US$0.39 per share compared to the net income of US$667 million, or US$2.15 per share, in the same period (second quarter) of last year.
Last year, oil companies benefited from significantly high oil prices. This year, those prices have dropped.
Still, Hess said increased production helped its earnings.
The company, via a release, said it produced more barrels of oil equivalent per day compared to the second quarter of 2022. Production increased from 303,000 barrels of oil per day to 387,000 barrels of oil per day.
Significant increases were recorded in the Bakken area in the United States (US) and Guyana. In Guyana, production increased from 67,000 barrels of oil per day to 110,000 barrels of oil per day. In Bakken, production increased from 140,000 barrels to 181,000 per day.
Importantly, the company believes its production will increase beyond what was earlier forecast.
“Full year net production is now forecast to be in the range of 385,000 barrels of oil equivalent per day (boepd) to 390,000 boepd, compared with previous guidance of 365,000 boepd to 375,000 boepd primarily due to strong operational performance and the expected startup of the Payara development early in the fourth quarter (pf 2023),” the release.
The Payara development is the third development in the Stabroek Block offshore Guyana.
At the Stabroek Block, where Hess has a 30% stake, net production from the Liza Destiny and the Liza Unity floating production, storage and offloading vessels (FPSOs) totaled 110,000 barrels of oil per day.
Those FPSOs are operating at the Liza Phase I and Phase II developments in the Stabroek Block. Overall- that is, for ExxonMobil, Hess and CNOOC- more than 360,000 barrels of oil are being produced daily.
Hess also noted, “In the second quarter of 2023, we sold nine cargos of crude oil from Guyana compared with six cargos in the prior-year quarter.
“Net production guidance for Guyana for the full year 2023 is expected to be approximately 115,000 bopd, compared to our previous guidance range of 105,000 bopd to 110,000 bopd.”
With Payara coming onstream later this year, Hess also reminded investors that Guyana’s he fourth development in the Stabroek Block, Yellowtail, was sanctioned in April 2022 with a production capacity of approximately 250,000 gross bopd. First production is 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.
