The company’s 2017 E&P capital and exploratory budget will be
Net 2017 production is forecast to average between 300,000 and 310,000
barrels of oil equivalent per day (boepd), excluding
“Our 2017 budget reflects our balanced approach to investing in short
cycle and long cycle growth options while maintaining our financial
President and COO
$700 millionprimarily to increase from two rigs to six rigs by the end of 2017 and to bring online approximately 75 new wells in the Bakken Shalein North Dakota. Funds are also included for non-operated wells and pad construction in preparation for 2018 drilling.
$375 millionprimarily for production activities in the deepwater Gulf of Mexico, including the drilling and completion of a production well at the Penn State Field (Hess 50 percent and operator) and for operations at the Valhall Field in Norway(Hess 64 percent, Aker BPoperator), where drilling will restart in late first quarter 2017.
$425 millionto drill two wells and complete three wells, install the tension leg platform and progress development of the Stampede Field in the deepwater Gulf of Mexico(Hess 25 percent and operator) to achieve first oil in 2018.
$275 millionto complete initial full field development of North Malay Basinin Malaysia(Hess 50 percent and operator) to achieve first production in the third quarter of 2017.
$125 millionfor development activities at the Liza Field in Guyana(Hess 30 percent, Esso Exploration and Production Guyana Limitedoperator).
Exploration and Appraisal Spend
$350 millionto drill wells on the Stabroek Block offshore Guyanathat include appraising the significant Liza Field, the recent Payara discovery and new exploration prospects. Additional funds are included for seismic acquisition and processing and for license acquisitions.
Fourth Quarter 2016 Earnings Update
The company’s fourth quarter results will include a noncash charge of
During the quarter, the company made the decision to defer further
development of the Equus natural gas fields on blocks WA-390-P and
WA-474-P (Hess 100%) offshore the North West Shelf of
Fourth quarter 2016 results will also include additional after-tax
charges affecting comparability of earnings of approximately
2017 Estimated Capital and Exploratory Expenditures
|By Segment:||By Region:|
|Exploration and Production||Exploration and Production|
|Exploration and Appraisal||350||Asia and Other||725|
Note: This budget excludes expenditures associated with the
Midstream segment, which has a 2017 capital budget of
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
For Hess Corporation
Jay Wilson, 212-536-8940
Sard Verbinnen & Co
Michael Henson/Patrick Scanlan, 212-687-8080