Hess Announces 2020 E&P Capital and Exploratory Budget
Hess Corporation (NYSE: HES) today announced a 2020 Exploration & Production capital and exploratory budget of $3.0 billion, of which more than 80% will be allocated to high return investments in Guyana and the Bakken.
Net production is forecast to average between 330,000 and 335,000 barrels of oil equivalent per day in 2020, excluding Libya. Bakken net production is forecast to average approximately 180,000 barrels of oil equivalent per day in 2020.
“We continue to successfully execute our long term strategy, with the majority of our capital budget directed to Guyana and the Bakken — two of the highest return investment opportunities in our industry that will become significant, long term cash generators for our company,” CEO John Hess said. “We are well positioned to deliver industry leading cash flow growth while also achieving significant reductions in our unit costs, which will drive margin expansion and lower our breakeven oil price to below $40 per barrel Brent by 2025.”
Chief Operating Officer Greg Hill said:
“In the Bakken, we plan to maintain a six rig program through the year, which is expected to result in our net production growing to approximately 200,000 barrels of oil equivalent per day by the end of 2020. Offshore Guyana, with the Liza Phase 1 development now on production, our focus in 2020 will be on the Liza Phase 2 development and on front end engineering design work to develop the Payara Field. We also will continue to invest in an active exploration and appraisal program in Guyana on both the Stabroek and Kaieteur Blocks and in the deepwater Gulf of Mexico.”
The $3.0 billion budget is allocated as follows: $1.69 billion (56%) for production, $860 million (29%) for offshore Guyana developments and $450 million (15%) for exploration and appraisal activities.
Source / More : Hess Corporation
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