Middle East

Hess Corp has higher capital spending,

January 25, 2022

Hess Corp said on Tuesday that it expects a 37% increase in its production capital budget in 2022. oil The company aims to focus on operations in Guyana and the Bakkenshale Basin in the United States.

With global oil prices rising more than 50% over the past year to over $ 86 a barrel, producers will spend more on exploration and drilling activities after years prioritizing shareholder returns over business investment. Is expected to be.

not yet, oil As Hess CEO John Hess mentioned earlier, companies are expected to maintain attractive shareholder interests. This month, we are announcing this year’s “meaningful” dividend growth and accelerating our repurchase plans.

Hess expects to spend $ 2.6 billion on production in 2022, of which about 80% will be allocated to Guyana and Bakken. Last year it was $ 1.9 billion.

The company’s net production is projected to average 330,000 to 340,000 barrels. oil The daily equivalent (boepd) of 2022 excluding Libya compared to the 295,000 boepd expected in 2021.

Due to market concerns, production is expected to increase oil Supply in the geopolitical tensions of Ukraine and Kazakhstan, and as OPEC and its allies struggled to reach higher production targets in recent months.

oil According to securities firm Cowen & Co, gas producers are expected to increase their budget by 13% this year.

Hess spends about $ 1 billion to further develop Guyana, one of the largest in the world. oil Discovered this century and considered the company’s growth engine, approximately $ 1.15 billion will be spent on production, including three rigs in the Bakken Basin, North Dakota.

The company plans to report its fourth quarter results on Wednesday.

(Report by Arathy Somasekhar in Bangalore, edited by Aditya Soni and Shounak Dasgupta)

https://www.oedigital.com/news/493772-hess-corp-sees-higher-capital-spending-output-in-2022-focus-on-guyana-and-bakken Hess Corp has higher capital spending,

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