Reports related to this article:
Project(s): View 6 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
Released February 06, 2018 | SUGAR LAND
en
SUGAR LAND--February 6, 2018--Researched by Industrial Info Resources (Sugar Land, Texas)--Despite higher realized prices during fourth-quarter 2017, Hess Corporation's (NYSE:HES) (New York, New York) production was down, leading the company into its 13th straight quarterly net loss. Industrial Info is tracking more than $7.1 billion in active Hess projects.
Hess' average realized crude oil selling price was $55.44 per barrel in fourth-quarter 2017, up from $45.97 in fourth-quarter 2016. Prices for natural gas liquids (NGL) were $22.78 per barrel, compared with $14.68 per barrel in the year-prior quarter. Natural gas prices were also up from fourth-quarter 2016. However, the company was not able to fully take advantage of the increase in prices, as production was down. Net production during the quarter, excluding the company's Libyan assets, was 282,000 barrels of oil equivalent per day (boe/d), compared with 307,000 boe/d in fourth-quarter 2016. The company cited asset sales, unplanned downtime and natural declines as causing the drop in production.
One area of increased production was Hess' operations in the Bakken Shale, where the company operated an average of four rigs during the quarter and brought 34 wells online. Bakken production increased 16%, rising from 95,000 boe/d to 110,000 boe/d.
The company is planning $2.1 billion in capital expenditures this year, unchanged from last year.
Among the top Hess projects being tracked by Industrial Info is the construction of the Stampede oil and gas production platform in the Gulf of Mexico. The platform is being developed 170 miles southeast of New Orleans at a depth of 3,350 feet and will have a processing capacity of 80,000 barrels per day (BBL/d) of oil and 120 million cubic feet per day of natural gas. Construction began in the summer of 2015. Kiewit Corporation (Omaha, Nebraska) and MODEC International Incorporated (Houston, Texas) are performing engineering, procurement and construction on the project. For more information, see Industrial Info's project reports on the production platform and subsea installation.
In the Bakken, the company plans to expand storage capacity for its increasing production. The Phase II and Phase III expansions of the Hawkeye crude oil facility in North Dakota will each add two tanks to store crude oil. Construction on the Phase II expansion is set to kick off this summer and be completed by the end of the year, while construction of Phase III is set to kick off early next year. WorleyParsons Limited (North Sydney, Australia) is performing engineering on the projects, each of which has an estimated total investment value (TIV) of $20 million. For more information, see Industrial Info's project reports on the Phase II and Phase III expansions.
Some of Hess' largest projects are occurring outside of the U.S. This summer, Hess plans to kick off construction of its floating production and storage and offloading vessel near the Pecan-1 oil field in offshore Ghana. The vessel will have a storage capacity of more than 9.4 million barrels. Construction on the $700 million project, which has an estimated TIV of $700 million, is scheduled for completion in the second half of 2020. For more information, see Industrial Info's project report.
In Equatorial Guinea, Hess is underway with an offshore drilling program in a joint venture with Tullow Oil plc (London, England) and GEPetrol (Malabo, Equatorial Guinea), the national oil company of Equatorial Guinea. The program involves drilling two wells at depths of 273 meters to increase production from 25,000 BBL/d to 30,000 BBL/d. The $50 million program kicked off late last year and is expected to be completed in late 2020. For more information, see Industrial Info's project report.
Hess reported a net loss of $2.68 billion for fourth-quarter 2017, compared with a net loss of $4.89 billion in fourth quarter 2016.
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' average realized crude oil selling price was $55.44 per barrel in fourth-quarter 2017, up from $45.97 in fourth-quarter 2016. Prices for natural gas liquids (NGL) were $22.78 per barrel, compared with $14.68 per barrel in the year-prior quarter. Natural gas prices were also up from fourth-quarter 2016. However, the company was not able to fully take advantage of the increase in prices, as production was down. Net production during the quarter, excluding the company's Libyan assets, was 282,000 barrels of oil equivalent per day (boe/d), compared with 307,000 boe/d in fourth-quarter 2016. The company cited asset sales, unplanned downtime and natural declines as causing the drop in production.
One area of increased production was Hess' operations in the Bakken Shale, where the company operated an average of four rigs during the quarter and brought 34 wells online. Bakken production increased 16%, rising from 95,000 boe/d to 110,000 boe/d.
The company is planning $2.1 billion in capital expenditures this year, unchanged from last year.
Among the top Hess projects being tracked by Industrial Info is the construction of the Stampede oil and gas production platform in the Gulf of Mexico. The platform is being developed 170 miles southeast of New Orleans at a depth of 3,350 feet and will have a processing capacity of 80,000 barrels per day (BBL/d) of oil and 120 million cubic feet per day of natural gas. Construction began in the summer of 2015. Kiewit Corporation (Omaha, Nebraska) and MODEC International Incorporated (Houston, Texas) are performing engineering, procurement and construction on the project. For more information, see Industrial Info's project reports on the production platform and subsea installation.
In the Bakken, the company plans to expand storage capacity for its increasing production. The Phase II and Phase III expansions of the Hawkeye crude oil facility in North Dakota will each add two tanks to store crude oil. Construction on the Phase II expansion is set to kick off this summer and be completed by the end of the year, while construction of Phase III is set to kick off early next year. WorleyParsons Limited (North Sydney, Australia) is performing engineering on the projects, each of which has an estimated total investment value (TIV) of $20 million. For more information, see Industrial Info's project reports on the Phase II and Phase III expansions.
Some of Hess' largest projects are occurring outside of the U.S. This summer, Hess plans to kick off construction of its floating production and storage and offloading vessel near the Pecan-1 oil field in offshore Ghana. The vessel will have a storage capacity of more than 9.4 million barrels. Construction on the $700 million project, which has an estimated TIV of $700 million, is scheduled for completion in the second half of 2020. For more information, see Industrial Info's project report.
In Equatorial Guinea, Hess is underway with an offshore drilling program in a joint venture with Tullow Oil plc (London, England) and GEPetrol (Malabo, Equatorial Guinea), the national oil company of Equatorial Guinea. The program involves drilling two wells at depths of 273 meters to increase production from 25,000 BBL/d to 30,000 BBL/d. The $50 million program kicked off late last year and is expected to be completed in late 2020. For more information, see Industrial Info's project report.
Hess reported a net loss of $2.68 billion for fourth-quarter 2017, compared with a net loss of $4.89 billion in fourth quarter 2016.
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.
