Hess Corporation increases oil and gas production from success in U.S. Bakken, offshore Guyana
(WO) – In its Q1 2024 financial report, Hess Corporation reported an increase in income and production, mostly due to operations offshore Guyana and in the U.S. Bakken shale region.
Hess’ E&P net income was $997 million in Q1 2024, compared with $405 million in Q1 2023. Net production was 476,000 boed in Q1 2024, compared with 374,000 boed in the Q1 2023, primarily due to higher production in Guyana and the Bakken.
In the second quarter of 2024, E&P net production is expected to be in the range of 465,000 boed to 475,000 boed, reflecting planned maintenance in the Gulf of Mexico partially offset by growth in the Bakken.
Guyana (Offshore). At the Stabroek Block (Hess – 30%), net production totaled 190,0001 bpd in Q1 2024, compared with 112,0001 bpd in the prior-year quarter. The third development on the block, Payara, which commenced production in November 2023, reached its initial production capacity of approximately 220,000 gross bpd in January 2024.
In Q1 2024, 15 cargos of crude oil were sold from Guyana, compared with nine cargos in the prior-year quarter. In Q2 2024, 13 cargos of crude oil are expected to be sold.
The fourth development on the Stabroek block, Yellowtail, was sanctioned in April 2022, with a production capacity of approximately 250,000 gross bpd and first production expected in 2025.
The fifth development, Uaru, was sanctioned in April 2023, with a production capacity of approximately 250,000 gross bpd and first production expected in 2026.
The sixth development, Whiptail, was sanctioned in April 2024 and is expected to add production capacity of approximately 250,000 gross bpd by the end of 2027.
The successful Bluefin-1 exploration well encountered approximately 197 ft of high-quality hydrocarbon bearing sandstone reservoirs. The well was drilled in 4,244 ft of water and is approximately 5 miles southeast of the Sailfin-1 discovery.
Bakken (Onshore U.S.). Net production from the Bakken was 190,000 boed in Q1 2024, compared with 163,000 boed in the prior-year quarter, primarily reflecting increased drilling and completion activity, as well as higher NGL and natural gas volumes received under percentage of proceeds contracts due to lower commodity prices.
NGL and natural gas volumes 2 received under percentage of proceeds contracts were 19,000 boed in Q1 2024, compared with 14,000 boed in Q1 2023, due to increasing volumes received as consideration for gas processing fees.
Q1 2024, Hess operated four rigs and drilled 31 wells, completed 21 wells, and brought 34 new wells online. The corporation plans to continue operating four drilling rigs in 2024.
Gulf of Mexico (Offshore U.S.). Net production from the Gulf of Mexico in Q1 2024 was 31,000 boed, compared with 33,000 boed in the prior-year quarter.
Southeast Asia (Offshore). Net production at North Malay Basin and JDA was 65,000 boed in the first quarter of 2024, compared with 66,000 bopd in the prior-year quarter.
