Offshore staff
NEW YORK – Hess has further trimmed its E&P capital and exploratory budget for 2020 to $1.9 billion, from $3 billion previously.
Cuts will come partly from a six to 12-month deferral of the Payara field development on the Stabroek block offshore Guyana, and scaled back drilling activity elsewhere on the block in 2020.
Operator ExxonMobil has temporarily idled two of the four drilling rigs contracted to work on the block due to COVID-19 travel restrictions.
While Phase 2 of the Liza field development, through the FPSO Liza Unity, remains on track for start-up in 2022, Payara, with expected production capacity of up to 220,000 b/d, may not now come onstream until 12 months after the original start-up target in 2023.
Elsewhere, slowing economic activity caused by the pandemic has impacted natural gas nominations at Hess’ offshore North Malay basin and JDA assets in Southeast Asia.
Combined production from these projects fell to 58,000 boe/d in 1Q compared to 68,000 boe/d previously.
The company now anticipates production of 35,000 boe/d in 2Q, and around 50,000 boe/d for the year as a whole.
05/07/2020
