Planned Expenditures Flat with 2017; Focus on High Return Projects in
“We are allocating approximately two thirds of our 2018 budget to our
transformative investment opportunity in
$900 millionprimarily to increase from four rigs to six rigs by the end of 2018 and to drill approximately 120 new wells and to bring online approximately 95 new wells in the Bakken Shalein North Dakota. Funds are also included for non-operated wells and pad construction in preparation for 2018-2019 drilling.
$175 millionfor production activities at North Malay Basin(Hess 50 percent and operator) and the Malaysia/Thailand Joint Development Area (Hess 50 percent) in the Gulf of Thailand.
$95 millionfor production operations in the deepwater Gulf of Mexico, completion of five previously drilled wells in the Utica Shalein Ohio(Hess 50 percent and operator), production operations in Libya(Hess 8.16 percent), and production operations at the South Arne Field (Hess 61.5 percent and operator) in Denmark, where a sales process is underway that is expected to be completed in 2018.
$250 millionassociated with the Liza Phase 1 development offshore Guyana(Hess 30 percent), where development drilling is expected to commence in the second quarter of 2018 with first production expected by 2020.
$65 millionfor front end engineering and design work for future development phases and capitalized interest in Guyana.
$240 millionfor continued development of the Stampede Field in the deepwater Gulf of Mexico(Hess 25 percent and operator), which is on track to start up in the first quarter of 2018.
Exploration and Appraisal
$375 millionto drill exploration and appraisal wells on the Stabroek Block offshore Guyana(Hess 30 percent), one exploration well on Block 42 in Suriname (Hess 33 percent) and one exploration well offshore Nova Scotia, Canada(Hess 50 percent). Funds are also included for seismic acquisition and processing and for license acquisitions.
2018 Estimated Capital and Exploratory Expenditures
|By Segment:||By Region:|
|Exploration and Production||Exploration and Production|
|Exploration and Appraisal||375||Other||100|
Note: This budget excludes expenditures associated with the
Midstream segment. The Other category includes:
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