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The
Net production is forecast to average between 330,000 and 350,000 barrels of oil equivalent per day in 2016. Bakken net production is forecast to average between 95,000 and 105,000 barrels of oil equivalent per day in 2016. These production forecasts are unchanged from preliminary guidance provided in October.
“In 2016 Hess will remain focused on preserving the strength of our
balance sheet, our top quartile operating capabilities and our long term
growth options,” CEO
Unconventionals -
-
$425 million to operate two rigs and bring online approximately 80 new wells in theBakken Shale inNorth Dakota -
$45 million to drill five wells and bring 14 new wells online in theUtica Shale inOhio during the first quarter of 2016, after which the rig will be released
Production -
-
$375 million for production activities in the deepwater Gulf ofMexico , including the drilling and completion of a production well and completion of a water injection well at the Tubular Bells Field (Hess 57.1 percent and operator), a production well at the Conger Field (Hess 37.5 percent and operator) and a water injection well at the Shenzi Field (Hess 28 percent, BHP operator) -
$140 million to complete the current stage of the Phase 3 drilling campaign at the South Arne Field (Hess 61.5 percent and operator) inDenmark by the end of the first quarter and for operations at the Valhall Field (Hess 64 percent, BP operator) inNorway -
$50 million to complete the Booster Compression project and processing of new broadband seismic data in the Joint Development Area in the Gulf ofThailand (Hess 50 percent, Carigali Hess operator)
Developments -
-
$375 million to progress full field development of theNorth Malay Basin project (Hess 50 percent and operator) inMalaysia -
$325 million to integrate hull and topsides, install subsea umbilicals, risers and flowlines and commence drilling at the Stampede Field (Hess 25 percent and operator) in the deepwater Gulf ofMexico -
$70 million for pre-development activities at the Liza Field (Hess 30 percent,Esso Exploration and Production Guyana Limited operator) inGuyana
Exploration and Appraisal -
-
$250 million to drill up to four wells on the Stabroek Block, offshoreGuyana that include evaluating the significant Liza discovery, a drill stem test, and additional exploration activities -
$175 million for drilling in the deepwater Gulf ofMexico including an appraisal well to delineate theSicily discovery (Hess 25 percent,Chevron operator) and an exploration well at the Melmar prospect (Hess 35 percent,ConocoPhillips operator), a large Paleogene four way structure in the Perdido Fold Belt, and other exploration activities
2016 Estimated Capital and Exploratory Expenditures |
|||||||
($ Millions) |
|||||||
By Segment: | By Region: | ||||||
Exploration and Production | Exploration and Production | ||||||
Unconventionals | $ | 470 | United States | $ | 1,400 | ||
Production | 610 | Europe | 140 | ||||
Developments | 820 | Africa | 40 | ||||
Exploration and Appraisal | 500 | Asia and Other | 820 | ||||
Total | $ | 2,400 | $ | 2,400 |
Note: This budget excludes expenditures associated with Hess’
50 percent interest in
Cautionary Statements
This news release contains projections and other forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. These
projections and statements reflect the company’s current views with
respect to future events and financial performance. No assurances
can be given, however, that these events will occur or that these
projections will be achieved, and actual results could differ materially
from those projected as a result of certain risk factors. A
discussion of these risk factors is included in the company’s periodic
reports filed with the
View source version on businesswire.com: http://www.businesswire.com/news/home/20160126005794/en/
Source:
For Hess Corporation
Investor Contact:
Jay
Wilson, (212) 536-8940
or
Media Contact:
Sard
Verbinnen & Co
Michael Henson/Patrick Scanlan, (212) 687-8080