Hess’ Guyana and Bakken projects will take the majority share of its US$3.7 billion 2023 exploration and production, capital and exploratory budget.
“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,” said Chief Executive Officer (CEO), John Hess.
The US$3.7 billion budget is allocated as follows: US$1.45 billion (39%) for production, US$1.7 billion (46%) for offshore Guyana developments and US$550 million (15%) for exploration and appraisal activities.
Hess said net production is forecast to average between 355,000 and 365,000 barrels of oil equivalent per day (bpd) in 2023. Hess puts net production from the Bakken to average between 165,000 and 170,000 bpd and Guyana’s net production to average approximately 100,000 bpd this year.
“Our capital program reflects continued execution of our strategy to invest only in high return, low-cost opportunities within our portfolio,” Hess said.
In 2023, Hess plans to advance its high oil value developments in Guyana, Chief Operating Officer (COO) Greg Hill explained. Hess will also be continuing its active exploration and appraisal program in the Stabroek Block.
Turning attention to the Bakken, Hess said it will be operating a four-rig program, to enable the company to maximize free cash flow generation, optimize its in-basin infrastructure and drive further reductions in its unit cash costs.
Hess said US$1.1 billion will go toward this. The company expects to drill approximately 110 gross operated wells and to bring online approximately 110 wells in 2023. Funds are also included for investment in non-operated wells.
In a detailed breakdown, Hess said US$90 million was allocated for the Liza Phase 1 and Phase 2 developments. Another US$1.21 billion will go towards the Payara, Yellowtail and Uaru developments. Payara is on track to come online by the end of 2023 with a gross production capacity of approximately 220,000 bpd; Yellowtail is expected to come online in 2025 with a gross production capacity of approximately 250,000 bpd and Uaru is expected to come online at the end of 2026 with a gross production capacity of approximately 250,000 bpd.
Hess will also be pumping US$150 million into Guyana’s gas-to-energy project and another US$250 million for front-end engineering and design work for future development phases on the Stabroek Block.
Hess also said that US$550 million has been allocated to drill approximately 10 exploration and appraisal wells on the Stabroek Block, two wells in the Gulf of Mexico and one well offshore Newfoundland, Canada. Funds are also included for seismic acquisition and processing in Guyana, Suriname and the deepwater Gulf of Mexico.