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Hess hails growing oil production in Guyana
CEO of Hess Corporation, John Hess (Hess hails growing oil production in Guyana)
Kaieteur News- United States oil company, Hess Corporation has released estimated results on its operations for the third quarter of 2024 (Q3 of 2024), which places a spotlight on the company’s increased oil production in Guyana, where Hess holds a 30% interest in the prolific Stabroek Block.
On Wednesday, the company showcased its financial results of a net income of US$498 million, or $1.62 per share. On an adjusted basis, Hess reported a net income of US$660 million, or $2.14 per share, in the third quarter of 2024. “The increase in adjusted after-tax earnings compared with the prior-year quarter primarily reflects higher production volumes, partially offset by lower realized selling prices in the third quarter of 2024,” the company said.
In relation to Guyana, Hess reported that net production from its operations reached 170,000 barrels of oil per day (bopd) up 57% from 108,000 bopd in the same period last year. Notably, the company’s overall net production in the third quarter rose to 461,000 barrels of oil equivalent per day (boepd), up 17% from 395,000 boepd in 2023. This increase, the company said is, “primarily due to higher production in Guyana.”
For this quarter, Hess expects net production to be in the range of 475,000 boepd to 485,000 boepd, primarily reflecting recovery from downtime in the third quarter at Guyana and Southeast Asia.
Guyana’s Stabroek Block, where Hess holds 30% interest
The company noted that production and exploration expenditure is expected to be approximately US$4.9 billion, up from previous guidance of US$4.2 billion. Hess said this reflects the decision to accelerate the purchase of the Liza Destiny and Prosperity floating production, storage and offloading vessels (FPSOs) from SBM Offshore in this quarter instead of in 2025. This publication had reported that ExxonMobil Guyana Limited (EMGL), the operator of the Stabroek Block is looking to purchase the other FPSOs Prosperity and Liza Destiny.
Stabroek Block asset
Back in 2023, it was announced that American oil giant, Chevron will be acquiring Hess for US$53 billion; which Hess shareholders approved back in May. While the U.S. Federal Trade Commission allowed Chevron’s purchase of Hess Corporation, the deal still need to clear a challenge by ExxonMobil and CNOOC Limited, Hess’s partners in a Guyana joint venture, who claim a right of first refusal to any sale of Hess’s Guyana assets, the prize in the proposed merger. A three-judge arbitration panel is due to consider the case next May.
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