Focus on High Return Investments to Deliver Capital Efficient Production Growth and Significant Future Free Cash Flow
Net production is forecast to average between 270,000 and 280,000
barrels of oil equivalent per day in 2019, excluding
“Our capital and exploratory expenditure program is designed to deliver
strong returns, production growth and significant future free cash
“In Guyana, 2019 will be the peak spend year for the Liza phase 1 development, which is on track for first oil by early 2020,” Hill said. “We also will begin Liza phase 2 development spending, complete the plan of development for Payara, and advance front end engineering and design work for future development phases.”
The company will review its long term capital program at its Investor
$1.425 billionto fund an increase to six rigs, from an average of 4.8 rigs in 2018, and the shift to higher intensity plug and perf wells in the Bakken. The company expects to drill approximately 170 new wells and to bring online approximately 160 new wells in 2019. Funds are also included for investment in non-operated wells.
$290 millionfor production operations in the deepwater Gulf of Mexico, including continued development of the Stampede Field (Hess 25 percent and operator) and tieback opportunities at the Llano Field (Hess 50 percent) and Tubular Bells Field (Hess 57 percent and operator).
$150 millionfor production activities in the Gulf of Thailandat North Malay Basin(Hess 50 percent and operator) and the Malaysia/Thailand Joint Development Area (Hess 50 percent).
$260 millionassociated with the Liza Phase 1 development offshore Guyana(Hess 30 percent), where first production is expected by 2020.
$310 millionincludes spend for Liza Phase 2 development, completing the plan of development for Payara, and front end engineering and design work for future development phases.
Exploration and Appraisal
$440 millionto drill exploration and appraisal wells on the Stabroek Block offshore Guyana(Hess 30 percent). Funds are also included for seismic acquisition and processing in Guyana, Suriname and the deepwater Gulf of Mexico, and for license acquisitions.
2019 Estimated Capital and Exploratory Expenditures
|By Segment:||By Region:|
|Exploration and Production||Exploration and Production||
|Exploration and Appraisal||440||Other||45|
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
For Hess Corporation