NorthAmOil: Hess to focus in 2023 on Bakken shale play

Hess Corp. will focus more than 80% of a $3.7bn capital and exploratory budget in 2023 on a four-rig drilling programme in the Bakken shale, and also on development in Guyana.

Net production in the Bakken, in North Dakota, is forecast to average 165,000-170,000 barrels of oil equivalent per day (boepd), said the New York-based exploration and production company.

"More than 80% of our 2023 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," Hess’ CEO, John Hess, said

Hess’ chief operating officer, Greg Hill, added: “In the Bakken, we plan to operate a four-rig programme, which will enable us to maximise free cash flow generation, optimise our in-basin infrastructure and drive further reductions in our unit cash costs.”

The company said that the $3.7bn budget – for the Bakken and Guyana – will consist of $1.45bn (39%) for production, $1.7bn (46%) for offshore Guyana developments and $550mn (15%) for exploration and appraisal activities.

This will include $1.1bn to fund the four-rig programme in the Bakken. The company expects to drill approximately 110 gross operated wells and to bring online about 110 wells in 2023. Funds are also included for investment in non-operated wells.

It will also include $125mn for production activities in the Gulf of Mexico, including drilling two tieback wells and seismic acquisition and processing.