Hess To Target Bakken, Offshore in 2019

US independent Hess Corporation announced December 10 its 2019 upstream capital budget is $2.9bn, three-quarters of which is to be spent on its mainly oil Bakken and Guyana assets.

The 2019 budget is roughly two-fifths more than its $2.1bn upstream capex for this year announced January 2018, which was flat relative to 2017. Chief operating officer Greg Hill said that Hess plans to drill 170 wells to boost US Bakken shale production, up 42% on 2018, investing half its global E&P capex ($1.425bn) there. Hess will also invest $290mn in the US Gulf of Mexico.

Hess will invest $150mn to expand gas output at its North Malay basin fields offshore Thailand (Hess 50% and operator) and Malaysia/Thailand offshore joint development area (Hess 50%).

The company expects worldwide net production to increase to between 270,000 and 280,000 barrels of oil equivalent per day (boe/d) in 2019 excluding Libya (up from some 245,000 boe/d in 2018 pro-forma) with half forecast to come as Bakken net production of 135-140,000 boe/d.

All told, production activities will absorb $1.89bn (65%), $570mn for its offshore developments (all of it on Liza off Guyana, so 20%) and $440mn (15%) for exploration and appraisal.