Hess Corporation has announced a 2022 Exploration & Production capital and exploratory budget of $2.6 billion, of which approx. 80% will be allocated to Guyana and the Bakken.
Net production is forecast to average between 330,000 and 340,000 barrels of oil equivalent per day in 2022, excluding Libya. Bakken net production is forecast to average between 165,000 and 170,000 barrels of oil equivalent per day in 2022.
'Our capital program reflects our continued discipline in investing in high return, low cost opportunities within our portfolio,' CEO John Hess said. 'The majority of our 2022 budget is allocated to Guyana, which is positioned to be one of the highest margin, lowest carbon intensity oil developments in the world, and to the Bakken, our largest operated asset where we have a robust inventory of high return future drilling locations.'
Chief Operating Officer Greg Hill said: 'In the Bakken, we plan to operate a three rig program, which will enable us to generate significant free cash flow, lower our unit cash costs and further optimize our infrastructure. In Guyana, our focus in 2022 will be on advancing our high value oil developments on the Stabroek Block, which have a Brent breakeven oil price of between $25 and $35 per barrel, and continuing our active exploration and appraisal program.'
The $2.6 billion budget is allocated as follows: $1,150 million (44%) for production, $1,000 million (39%) for offshore Guyana developments and $450 million (17%) for exploration and appraisal activities.
Source: Hess
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