Hess Corporation directed the majority of its capital and exploratory expenditures in the first quarter of 2025 to operations in Guyana, as the country continues to grow in importance to the company’s portfolio.
The U.S. oil producer reported that it spent US$613 million, or 56.5% of its total US$1.085 billion in exploration and production (E&P) capital expenditures, on Guyana, where it holds a 30% stake in the Stabroek Block. The block is operated by ExxonMobil, with CNOOC holding the remaining 25% interest.
In contrast, Hess spent US$455 million in the United States, including US$360 million in North Dakota’s Bakken shale play and US$95 million on offshore and other domestic areas.
Production figures also spoke to Guyana’s growing weight. Net production from the company’s assets in the country averaged 183,000 barrels of oil per day (b/d), representing 60.2% of Hess’s total net crude oil production of 304,000 bpd. On a barrels of oil equivalent (boe) basis, which includes natural gas and natural gas liquids, Guyana’s crude accounted for 38.4% of total company production of 476,000 boe per day.
Crude oil sold from Guyana also fetched the highest realized price among Hess’ producing jurisdictions. The company reported an average selling price of $73.03 per barrel in Guyana, compared to a worldwide average of $71.22. U.S. crude averaged $68.53, with North Dakota at $67.52 and offshore U.S. crude at $71.44. In Malaysia and the Malaysia–Thailand Joint Development Area, Hess realized $64.05 per barrel.
Production in Guyana is ongoing at the Liza 1, Liza 2, and Payara projects. With additional production capacity expected from upcoming projects, including the Yellowtail project set to start soon, Guyana is expected to become Hess’ top earning and producing jurisdiction in the near future.
The increasing importance of Guyana in Hess’ portfolio continues to make the company a prime target in Chevron’s planned acquisition of the smaller firm. That deal faces some uncertainty, as ExxonMobil and CNOOC have invoked a right of first refusal clause in their joint operating agreement with Hess, arguing it applies to Chevron’s takeover bid. The matter is now before an arbitration tribunal, with the merits hearing scheduled for May 2025. If the panel rules that the clause is enforceable, ExxonMobil and CNOOC could acquire Hess’ 30% stake in the Stabroek Block, derailing Chevron’s acquisition. A decision is expected roughly three months after the hearing.
