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Hess praises Guyana for helping it close 2023 with US$413M profits
– says country’s oil resources also boosted its asset base
Kaieteur News – American oil producer, Hess Corporation continues to sing Guyana’s praises as the country’s booming oil production has helped it close 2023 with US$413M in profits. The company made this disclosure via a statement to the market yesterday.
Notably, Hess said its net income of US$413M or US$1.34 per share in the fourth quarter of 2023 is US$84M less than what it made in the 2022 fourth quarter.
The company said the decrease reflects a lower price it received for gas and natural gas liquids (NGL), partially offset by higher production volumes, in the fourth quarter of 2023.
At the Stabroek Block where it holds a 30 percent working interest, Hess said net production totaled 128,000 barrels of oil per day (bopd) in the fourth quarter of 2023, compared with 116,000 bopd in the prior-year’s quarter.
The oil producer said in November, production commenced from the Prosperity Floating, Production, Storage and Offloading (FPSO) vessel at the Payara Project which contributed 14,000 net bopd in the fourth quarter of 2023.
As for the fourth development on the block, Yellowtail, Hess said this was sanctioned in April 2022 with a production capacity of approximately 250,000 gross bopd and first production expected in 2025.
With respect to the fifth development, Uaru, Hess recalled that it was sanctioned in April 2023 with a production capacity of approximately 250,000 gross bopd and first production expected in 2026.
Additionally, Stabroek Block operator, ExxonMobil, had submitted the field development plan for the sixth development, Whiptail, to the Government of Guyana in October 2023. Approval is expected this quarter.
Hess was also keen to note that Guyana played an important role in boosting its proven reserve base. The term “proven reserve base” in the oil sector refers to the quantity of oil reserves that are confidently known to exist and are recoverable under current economic conditions and existing technological capabilities.
Hess said its proven reserves at December 31, 2023, which are subject to final review, were 1.37 billion barrels of oil equivalent (boe) compared with 1.26 billion boe at December 31, 2022. “Proven reserve additions and net revisions in 2023 totaled 261 million boe, primarily from Guyana, which included sanctioning of the Uaru development, and from the Bakken,” Hess said.
With respect to its exploration and production capital expenditures, Hess said this stood at US$1.5B in the fourth quarter of 2023, compared with US$818 million in the prior-year quarter, reflecting the purchase of the Liza Unity FPSO in the fourth quarter of 2023. Hess said its share for the FPSO was approximately US$380 million. It said too that the US$1.5B catered for higher development activities in Guyana, and an increase in drilling activity in the Bakken, USA.
Due to the pending merger with Chevron Corporation (Chevron), Hess said it will not host a conference call to review its fourth quarter 2023 results. The statement it issued will therefore have to suffice for the market.
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