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Released July 30, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The COVID-19 pandemic may have roiled the global Oil & Gas Industry, but midstream major Hess Corporation (NYSE:HES) (Houston, Texas) is doing its best to keep some of its highest-profile projects on schedule. The company is maintaining its full-year 2020 capital-spending plan for exploration and production (E&P) at about $1.9 billion, and it is notching up progress on multi-phase developments in the Bakken Shale and the Gulf of Mexico. In total, Industrial Info is tracking about $4 billion worth of active project involving Hess worldwide.
Hess recently revised its net production guidance for 2020 (excluding Libya) upward to about 330,000 barrels of oil equivalent per day (BOE/d), up from the previous guidance of about 320,000 BOE/d. The company's second-quarter net production (excluding Libya) averaged 334,000 BOE/d, beating expectations of 312,000 BOE/d.
Hess reported some of its strongest second-quarter production gains in the Bakken Shale, where its net production of 194,000 BOE/d was 39% higher when compared with second-quarter 2019. The company now expects its Bakken net production for full-year 2020 to average about 185,000 BOE/d, up from the previous guidance of about 175,000 BOE/d, due to a strong year-to-date performance and the deferral of a planned maintenance turnaround at its gas-processing plant in Tioga, North Dakota, from the third-quarter 2020 to sometime in 2021. For more information on the turnaround, see Industrial Info's project report.
Click on the image at right for a map of Hess's Bakken Shale developments.
Although Hess cited COVID-19 as the major reason for the deferred maintenance, several key capital-spending projects at the same facility are moving forward with only limited delays. These include the $150 million second-phase expansion of the Tioga plant, which is expected to add 150 million standard cubic feet per day of gas-processing capacity through the construction of a new train, bringing the plant's total capacity to 400 million standard cubic feet per day. Earlier this year, Hess pushed back its completion date for the expansion from February 2021 to July 2021, but the projected capacity and other factors remain unchanged. For more information, see Industrial Info's project report.
Another aspect of the Tioga buildout, an estimated $100 million natural gas liquid (NGL) pipeline lateral, remains on schedule. The 30,000-barrel-per-day (BBL/d) line will connect the Tioga facility and two other gas-processing plants in the area with the existing Bakken NGL Pipeline in eastern Montana. The project, which kicked off in May, is expected to wrap up toward the end of 2020. For more information, see Industrial Info's project report.
Offshore Guyana Project On Track for Second Phase
In December, Esso Exploration and Production Guyana Limited began production in the Liza Field, offshore Guyana, averaging about 22,000 BOE/d in the second quarter. Hess Guyana Exploration Limited, a subsidiary of Hess, has a 30% stake in Esso and is handling its planning and scheduling. Exxon Mobil Corporation (NYSE:XOM) (ExxonMobil) (Irving, Texas) has a 45% stake in Esso, while a subsidiary of China's CNOOC holds 25%.
Click on the image at right for a map of the Liza Field developments.
Esso is now commissioning water-injection equipment and bringing its natural gas-injection capacity in the Liza Field online, which it expects will allow the associated floating production, offloading, and storage vessel (FPSO) to reach its planned capacity of 120,000 BOE/d in August. The $800 million second phase of the Liza development, which will install a second FPSO and add 220,000 BOE/d of processing capacity, remains on target to wrap up toward the end of the year and achieve its first oil in early 2022. For more information, see Industrial Info's project report.
ExxonMobil is deferring some of its longer-term offshore drilling in Guyana as a result of capital spending cuts, which means some of its projects related to the Liza developments still could see delays in their production startups of six to 12 months. A $500 million third phase of the Liza FPSO had been scheduled to begin construction after the second phase was completed, but now is unlikely to kick off before mid-2022. The third FPSO is expected to add 180,000 BOE/d of processing capacity. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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/.
Hess recently revised its net production guidance for 2020 (excluding Libya) upward to about 330,000 barrels of oil equivalent per day (BOE/d), up from the previous guidance of about 320,000 BOE/d. The company's second-quarter net production (excluding Libya) averaged 334,000 BOE/d, beating expectations of 312,000 BOE/d.
Hess reported some of its strongest second-quarter production gains in the Bakken Shale, where its net production of 194,000 BOE/d was 39% higher when compared with second-quarter 2019. The company now expects its Bakken net production for full-year 2020 to average about 185,000 BOE/d, up from the previous guidance of about 175,000 BOE/d, due to a strong year-to-date performance and the deferral of a planned maintenance turnaround at its gas-processing plant in Tioga, North Dakota, from the third-quarter 2020 to sometime in 2021. For more information on the turnaround, see Industrial Info's project report.
Click on the image at right for a map of Hess's Bakken Shale developments.Although Hess cited COVID-19 as the major reason for the deferred maintenance, several key capital-spending projects at the same facility are moving forward with only limited delays. These include the $150 million second-phase expansion of the Tioga plant, which is expected to add 150 million standard cubic feet per day of gas-processing capacity through the construction of a new train, bringing the plant's total capacity to 400 million standard cubic feet per day. Earlier this year, Hess pushed back its completion date for the expansion from February 2021 to July 2021, but the projected capacity and other factors remain unchanged. For more information, see Industrial Info's project report.
Another aspect of the Tioga buildout, an estimated $100 million natural gas liquid (NGL) pipeline lateral, remains on schedule. The 30,000-barrel-per-day (BBL/d) line will connect the Tioga facility and two other gas-processing plants in the area with the existing Bakken NGL Pipeline in eastern Montana. The project, which kicked off in May, is expected to wrap up toward the end of 2020. For more information, see Industrial Info's project report.
Offshore Guyana Project On Track for Second Phase
In December, Esso Exploration and Production Guyana Limited began production in the Liza Field, offshore Guyana, averaging about 22,000 BOE/d in the second quarter. Hess Guyana Exploration Limited, a subsidiary of Hess, has a 30% stake in Esso and is handling its planning and scheduling. Exxon Mobil Corporation (NYSE:XOM) (ExxonMobil) (Irving, Texas) has a 45% stake in Esso, while a subsidiary of China's CNOOC holds 25%.
Click on the image at right for a map of the Liza Field developments.Esso is now commissioning water-injection equipment and bringing its natural gas-injection capacity in the Liza Field online, which it expects will allow the associated floating production, offloading, and storage vessel (FPSO) to reach its planned capacity of 120,000 BOE/d in August. The $800 million second phase of the Liza development, which will install a second FPSO and add 220,000 BOE/d of processing capacity, remains on target to wrap up toward the end of the year and achieve its first oil in early 2022. For more information, see Industrial Info's project report.
ExxonMobil is deferring some of its longer-term offshore drilling in Guyana as a result of capital spending cuts, which means some of its projects related to the Liza developments still could see delays in their production startups of six to 12 months. A $500 million third phase of the Liza FPSO had been scheduled to begin construction after the second phase was completed, but now is unlikely to kick off before mid-2022. The third FPSO is expected to add 180,000 BOE/d of processing capacity. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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/.
