Page 13 - NorthAmOil Week 04 2023

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Source: Reuters

Hess to focus in 2023 on Bakken play

AMERICAS HESS will allocate more than 80% of its $3.7bn exploration and appraisal activities.
capital and exploratory budget for 2023 to a four- This will include $1.1bn to fund the four-
rig drilling programme in the Bakken play, and rig programme in the Bakken. The company
also on development in Guyana. expects to drill roughly 110 gross operated wells
The company said its net production in the and to bring online about the same number in
Bakken, in North Dakota, was forecast to aver- 2023. Funds are also included for investment in
age 165,000-170,000 barrels of oil equivalent per non-operated wells.
day (boepd). The budget will also include $125mn for
“More than 80% of our 2023 budget is allo- production activities in the US Gulf of Mexico,
cated to Guyana, which is positioned to be one of including drilling two tieback wells and seismic
the highest-margin, lowest carbon intensity oil acquisition and processing.
developments in the world, and to the Bakken, Hess’ exploration and appraisal budget will
our largest operated asset where we have a robust include $550mn to drill two wells in the Gulf,
inventory of high-return future drilling loca- one well offshore Newfoundland and Labrador,
tions,” Hess’ CEO, John Hess, said. Canada and about 10 exploration and appraisal
Hess’ chief operating officer, Greg Hill, added: wells on the Stabroek Block in Guyana. Funds
“In the Bakken, we plan to operate a four-rig are also included for seismic acquisition and pro-
programme, which will enable us to maximise cessing in the deepwater Gulf.
free cash flow generation, optimise our in-basin In 2023, North Dakota’s production
infrastructure and drive further reductions in average is estimated to be 1mn barrels per
our unit cash costs.” day (bpd) thanks to output from the Bakken
The company said that its $3.7bn budget play.
would consist of $1.45bn, or 39%, for pro- For the fourth quarter 2022, Hess reported
duction, $1.7bn, or 46%, for offshore Guy- net income of $624mn, up from $265mn a year
ana developments and $550mn, or 15%, for earlier. Its earnings were $1.78 per share.™

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