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Released October 24, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--In a move that could reshape the exploration of U.S. shale plays, Chevron Corporation (NYSE:CVX) announced this week it had agreed to acquire all of the outstanding shares of Hess Corporation (NYSE:HES) in an all-stock transaction valued at $53 billion. The jewel in the crown is Hess' assets in the Bakken Shale, which will further complement Chevron's strong hand in the Denver-Julesburg (DJ) and Permian basins. Industrial Info is tracking more than $5.7 billion worth of active and planned projects in the U.S. Oil & Gas Industry from Chevron, as well as $160 million worth from Hess.
Click on the image at right for a graph detailing Chevron's active and planned U.S.-based projects, by project type.
The total enterprise value of the transaction (when including debt) is $60 billion. Most of Hess' U.S.-based assets tracked by Industrial Info are in western North Dakota's Bakken Shale and the deepwater Gulf of Mexico. Subscribers to Industrial Info's Oil & Gas Plant Database can click here for a list of detailed profiles for Hess's existing U.S. assets.
During a recent quarterly earnings-related conference call, Hess executives announced the company plans to tie back its Pickerel-1 oil discovery in the Gulf's Mississippi Canyon Block 727 to its Tubular Bells production platform, after Hess discovered oil in the prospect over the summer. The company plans to begin drilling toward the end of first-quarter 2024, with the 10-mile subsea pipeline set to wrap up a few months later. Subscribers to Industrial Info's Oil & Gas Project Database can read detailed reports on the drilling and pipeline components.
"We've got over 80 blocks in the Gulf of Mexico," said Greg Hill, the chief operating officer of Hess, in the July conference call. "With that inventory, we aim to maintain that cash engine in the Gulf of Mexico at a minimum, hold production broadly flat, and potentially grow that production with a hub-class success."
Earlier this year, Chevron began construction on its own project in the Mississippi Canyon: the Ballymore offshore field development in Block 607, which it owns in a 60:40 partnership, respectively, with Total E&P USA Incorporated (Houston, Texas), a subsidiary of TotalEnergies SE (NYSE:TTE) (Paris, France). When it sanctioned Ballymore in May 2022, Chevron said the 75,000-barrel-per-day crude oil-drilling project would be developed with a three-mile subsea tieback to its Blind Faith platform. Subscribers can read detailed reports on the drilling, tieback and platform construction.
Chevron already has been aggressively adding acreage in the Gulf of Mexico. In its most recent quarterly earnings-related conference call, Chevron's Chief Executive Officer Michael Wirth said the company had acquired twice as many leases in the most recent Gulf lease sale, as had been acquired in the biggest Gulf lease sale over the last eight years.
One of Hess' most valuable assets in the Bakken Shale is its Tioga Gas Plant in northwestern North Dakota, which is one of the largest natural gas-processing and fractionation facilities in the area. The plant, which has an overall plant capacity of 400 million standard cubic feet per day, has a throughput capacity of 80,000 barrels per day and can store roughly 80,000 barrels of natural gas liquids (NGLs), according to Hess.
Hess has been considering the proposed Bakken Header Supply Lateral pipeline, which would carry as much as 295 million standard cubic feet per day of natural gas about 64 miles, to an interconnection with a pipeline that connects to Chicago. However, the project remains in its early development phase. Subscribers can learn more from Industrial Info's project report.
The sale of Hess to Chevron has been approved by both companies' boards of directors and is expected to close in the first half of 2024, according to press releases.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed reports for active and planned projects in the U.S. Oil & Gas Industry from Chevron, and click here for a full list of detailed reports for Hess projects worldwide.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing Chevron's active and planned U.S.-based projects, by project type.The total enterprise value of the transaction (when including debt) is $60 billion. Most of Hess' U.S.-based assets tracked by Industrial Info are in western North Dakota's Bakken Shale and the deepwater Gulf of Mexico. Subscribers to Industrial Info's Oil & Gas Plant Database can click here for a list of detailed profiles for Hess's existing U.S. assets.
During a recent quarterly earnings-related conference call, Hess executives announced the company plans to tie back its Pickerel-1 oil discovery in the Gulf's Mississippi Canyon Block 727 to its Tubular Bells production platform, after Hess discovered oil in the prospect over the summer. The company plans to begin drilling toward the end of first-quarter 2024, with the 10-mile subsea pipeline set to wrap up a few months later. Subscribers to Industrial Info's Oil & Gas Project Database can read detailed reports on the drilling and pipeline components.
"We've got over 80 blocks in the Gulf of Mexico," said Greg Hill, the chief operating officer of Hess, in the July conference call. "With that inventory, we aim to maintain that cash engine in the Gulf of Mexico at a minimum, hold production broadly flat, and potentially grow that production with a hub-class success."
Earlier this year, Chevron began construction on its own project in the Mississippi Canyon: the Ballymore offshore field development in Block 607, which it owns in a 60:40 partnership, respectively, with Total E&P USA Incorporated (Houston, Texas), a subsidiary of TotalEnergies SE (NYSE:TTE) (Paris, France). When it sanctioned Ballymore in May 2022, Chevron said the 75,000-barrel-per-day crude oil-drilling project would be developed with a three-mile subsea tieback to its Blind Faith platform. Subscribers can read detailed reports on the drilling, tieback and platform construction.
Chevron already has been aggressively adding acreage in the Gulf of Mexico. In its most recent quarterly earnings-related conference call, Chevron's Chief Executive Officer Michael Wirth said the company had acquired twice as many leases in the most recent Gulf lease sale, as had been acquired in the biggest Gulf lease sale over the last eight years.
One of Hess' most valuable assets in the Bakken Shale is its Tioga Gas Plant in northwestern North Dakota, which is one of the largest natural gas-processing and fractionation facilities in the area. The plant, which has an overall plant capacity of 400 million standard cubic feet per day, has a throughput capacity of 80,000 barrels per day and can store roughly 80,000 barrels of natural gas liquids (NGLs), according to Hess.
Hess has been considering the proposed Bakken Header Supply Lateral pipeline, which would carry as much as 295 million standard cubic feet per day of natural gas about 64 miles, to an interconnection with a pipeline that connects to Chicago. However, the project remains in its early development phase. Subscribers can learn more from Industrial Info's project report.
The sale of Hess to Chevron has been approved by both companies' boards of directors and is expected to close in the first half of 2024, according to press releases.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed reports for active and planned projects in the U.S. Oil & Gas Industry from Chevron, and click here for a full list of detailed reports for Hess projects worldwide.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
