Hess reports big hike in Guyana crude output

Net oil production for Hess from Guyana offshore block Stabroek in the first quarter averaged 190,000b/d, up 48% sequentially and 70% year-on-year.

The New York-based upstream company holds 30% of the acreage, which is operated by ExxonMobil Guyana with a 45% interest. CNOOC Petroleum Guyana holds 25%.

In its latest financials, Hess highlighted the start of Stabroek’s third development, Payara, in November, and said that initial gross production capacity of around 200,000b/d was reached in January.

The company said that 15 crude cargos were sold from Guyana in 1Q24 compared with nine in the year-ago quarter and that 13 are expected to be sold this quarter.

The block’s fourth (Yellowtail), fifth (Uaru) and sixth (Whiptail) phases, each 250,000b/d gross, are penciled in to come online in 2025, 2026 and 2027, respectively. The latter development was sanctioned in recent weeks.

Hess’ 1Q24 exploration and production capital and exploratory expenditures totaled US$477mn for Guyana or 48% of the spend for the group, with the same amount allocated to the US.

The company’s net profit in the first three months of 2024 totaled US$972mn and revenue reached US$3.34bn, compared with US$413mn and US$3.04bn in 4Q23, and US$346mn and US$2.45bn in 1Q23.

First quarter 2024 crude production for Hess

Guyana	190,000b/d
US	110,000b/d
Malaysia	5,000b/d

Source: Hess