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Hess Corp. estimates its net production will increase between 12% and 15% in 2022, driven by added output coming from the Bakken shale field in North Dakota and from Guyana, the company said on Jan. 26.
Hess plans to pay off debt and increase its base dividend once its second production unit in Guyana is operational, executives told investors during its fourth-quarter conference call. The production vessel Liza Unity is expected to begin operations there this quarter.
A consortium with operator Exxon Mobil Corp., Hess and Chinese oil company CNOOC Ltd. controls all production coming from the South American country.
The group expects to drill an additional 12 wells in the country this year, and increase output from its first production vessel to 140,000 bbl/d following optimization work planned for March.
Reuters reported on Jan. 25, citing a source, that Exxon Mobil plans to start production next month at its second oil platform in Guyana.
Hess said it may add a fourth rig in the Bakken next year, after increasing shareholder returns, bringing oil production there to around 200,0000 bbl/d. It estimates it could sustain that production level for a decade.
Output from the Bakken and Guyana should account for 80% of the added 330,000 to 340,000 boe/d net production expected for this year, excluding Libya, the company said.
Earlier on Jan. 26, Hess posted a fourth-quarter profit that handily beat Wall Street estimates, boosted by crude prices surging on the back of recovering demand and fears of a supply crunch. Adjusted profit came in at $265 million, or 85 cents per share, in the quarter.
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