Hess Corporation's 10 Top-Valued Projects Reflect Plans to Grow Amid Downturn in Oil Prices

Researched by Industrial Info Resources (Sugar Land, Texas)--Oil & gas producer Hess Corporation (NYSE:HES) (Houston, Texas) has endured rough waters amid low commodity prices, lowering exploration and production capital spending for 2016 to $2.1 billion, roughly half the amount spent in 2015. But it's on track with a series of plans for growth, which are reflected in the company's 10 highest-valued projects. Industrial Info's project database is tracking $14.19 billion in active Hess projects, spanning five continents and some of the world's most active developments.

All eyes are on Hess' largest active project: the $4 billion Stampede Oil Production Platform and a related $2 billion subsea installation in the Gulf of Mexico. Hess, which will operate the platform and owns a 25% working interest in the project, expects the project to become a major cash generator by 2018. In an earnings call at the end of the second quarter, executives said that drilling operations are progressing, as well as fabrication and pre-commissioning of the topsides, with first oil on schedule for 2018. For more information, including components and specifications, see Industrial Info's project reports on the production platform and the subsea installation.

Statoil, Nexen Petroleum Offshore and a subsidiary of Chevron also have 25% shares. A subsidiary of Wood Group plc (Aberdeen, Scotland) is performing front-end engineering and design (FEED) services. For details on Wood's contribution, see July 25, 2016, article - Wood Group's 10 Top-Valued Projects Awash in Offshore LNG, with Gulf Coast, Synthetic Fuels to Boot.

Another closely followed project is Hess' Bergading North Malay Basin Project in the South China Sea, offshore Malaysia, including the $200 million floating storage and offloading (FSO) facility and $123.3 million natural gas central processing platform. Hess is expanding work in its projects offshore Malaysia, and cites the region as a global hotspot for production. For more information, see Industrial Info's project reports for the FSO facility and the central processing platform.

"These two projects [Bergading and Stampede], which will come online in 2017 and 2018, respectively, will add a combined 35,000 barrels of oil equivalent per day, and go from being sizable cash users to significant long-term cash generators for the company," said John B. Hess, the chief executive officer and director, in the earnings call.

Industrial Info also is tracking three major components of Hess' Equus Floating Natural Gas Production System, offshore Australia:

• $3.24 billion offshore floating production system
  For more information, see Industrial Info's project report.
• $2.26 billion subsea development
  For more information, see Industrial Info's project report.
• $903 million subsea export pipeline
  For more information, see Industrial Info's project report.

And Industrial Info is tracking three of Hess' natural gas wellhead platforms, offshore Malaysia:

• $105 million Gajah Puteri platform
  For more information, see Industrial Info's project report.
• $150 million Bison platform
  For more information, see Industrial Info's project report.
• $105 million Iguana platform
  For more information, see Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.