Hess cuts budget but stays with deepwater

January 27, 2015

New York-headquartered Hess says it is cutting its 2015 capital and exploration budget by 16%, compared to 2014, to US$4.7 billion.

While the firm said most of the cash (45%/$2.1 billion) would be spent on its unconventional shale resources, deepwater would remain a focus. 

The 2015 budget includes spending $0.4 billion on exploration, specifically, the Sicily well (Hess 25%, Chevron operator) in deepwater Gulf of Mexico, and the Liza well (Hess 30%, Esso Exploration and Production Guyana operator) offshore Guyana. 

Image: The Tubular Bells development in the Gulf of Mexico. Photo from Hess Corp.

Of a total $1.2 billion to be spent on production, $300 million will be spent on drilling four production wells and one water injection well at the South Arne field (Hess 62% and operator) offshore Denmark and on bringing three production wells online and drill one new well at the Valhall field (Hess 64%, BP operator) offshore Norway.

Some $250 million will be spent completing drilling one production well and one water injection well, and for continued facilities work at Tubular Bells (Hess 57.1% and operator) in the US Gulf of Mexico.

Hess says $220 million will be spent drilling two production wells (Hess 85% and operator) in Equatorial Guinea and 

$200 million drilling production, appraisal and water injection wells at the Shenzi field (Hess 28%, BHP operator), in the Gulf of Mexico. 

Some $175 million will be spent drilling 8-10 wells and progressing the ongoing booster compression project in the Joint Development Area (Hess 50%) in the Gulf of Thailand.

Additionally the budget will fund continued full field development of the North Malay Basin project offshore Malaysia, with $600 million to be spent installing three wellhead platform jackets, progress fabrication and starting Phase 1 drilling (Hess 50% percent and operator).

Some $300 million will be spent progressing the hull and topsides fabrication and the start of drilling at the Stampede field (Hess 25% and operator) in the deepwater Gulf of Mexico. 



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