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Planned Expenditures in Line with Previous Guidance; Majority Allocated to High Return Investment Opportunities in
Net production is forecast to average between 330,000 and 335,000 barrels of oil equivalent per day in 2020, excluding
“We continue to successfully execute our long term strategy, with the majority of our capital budget directed to
Chief Operating Officer
The
Production
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$1.375 billion to fund a six rig program in the Bakken. The company expects to drill approximately 170 new wells and to bring online approximately 175 new wells in 2020. Funds are also included for investment in non-operated wells. -
$135 million for production operations in the deepwater Gulf ofMexico , including development of the Esox-1 tieback (Hess 57.14% and operator). -
$170 million for production activities atNorth Malay Basin (Hess 50% and operator) and theMalaysia /Thailand Joint Development Area (Hess 50%) in the Gulf ofThailand .
Developments
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$100 million associated with the Liza Phase 1 development offshoreGuyana (Hess 30%), where first production was achieved inDecember 2019 . -
$400 million for the Liza Phase 2 development, where first production is expected by mid 2022. -
$360 million to progress development plans for the Payara Field, where production is expected as early as 2023, and for front end engineering and design work for future developments.
Exploration and Appraisal
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$450 million to drill exploration and appraisal wells on the Stabroek and Kaieteur Blocks offshoreGuyana (Hess 30% and 15%, respectively) and two exploration wells in the Gulf ofMexico . Funds are also included for seismic acquisition and processing inGuyana , Suriname and the deepwater Gulf ofMexico , and for license acquisitions.
2020 Estimated Capital and Exploratory Expenditures |
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($ Millions) |
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By Segment: |
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By Region: |
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Exploration and Production |
|
|
Exploration and Production |
|
Production |
$1,690 |
|
United States |
$1,730 |
Developments |
860 |
|
International |
1,270 |
Exploration and Appraisal |
450 |
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|
|
Total |
$3,000 |
|
|
$3,000 |
Note: This budget excludes expenditures associated with the Midstream segment.
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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: https://www.businesswire.com/news/home/20200128005434/en/
Source:
For Hess Corporation
Investors:
Jay Wilson
(212) 536-8940
jrwilson@hess.com
Media:
Lorrie Hecker
(212) 536-8250
lhecker@hess.com