Hess

NOIA Member Spotlight

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Founded in 1933, Hess is a leading independent energy company that explores and produces crude oil and natural gas. Hess’ global portfolio is focused in five strategic areas: onshore North America; deepwater Gulf of Mexico, the North Sea, offshore West Africa, and offshore Malaysia. The company is also engaged in exploration activities in the Gulf of Mexico, South America and Nova Scotia.

Baldpate, located in the Gulf of Mexico 110 miles off the Louisiana coast in the Garden Banks area, was discovered in 1991 and achieved first oil through the world’s first free-standing compliant tower platform in 1998. Hess is operator with 50% interest.

Offshore, Hess has a high-margin portfolio with strong operating cash flow.  The company has demonstrated leading capabilities to safely execute highly complex, deepwater development projects with top-quartile performance in offshore drilling and project delivery. Hess is a pioneer of sub-sea drilling techniques in Denmark and West Africa. The company is increasing recovery rates by applying advanced 4D seismic technologies across its assets and also has an expertise in sub-salt seismic imaging. Hess values its trusted relationships with other operators and was selected operator by the Malaysian national oil company and Gulf of Mexico co-owners.

Stampede, located in the Gulf of Mexico 115 miles south of Fourchon, Louisiana, in the deepwater Green Canyon area, was discovered in 2005. First production is expected in 2018. Hess is operator with 25% interest.

In the Gulf of Mexico, Hess is the sixth largest producer in deepwater. One of its major projects, the Stampede deepwater oil and gas field, is one of the largest undeveloped fields in the Gulf of Mexico, with gross recoverable reserves estimated in the range of 300-350 million barrels of oil equivalent. Discovered in 2005, the field is located in 3,500 feet of water, and has a reservoir depth of 30,000 feet. Once onstream, anticipated in 2018, Stampede is expected to provide a significant contribution to Hess’ future growth. A total of six producers and four water injection wells from two drill centers are planned. Hess is operator and has a 25 percent working interest in the field, alongside its co-owners – Union Oil Company of California, a Chevron subsidiary,  Statoil, and Nexen.

Hess operates the North Malay Basin – Integrated Gas Development project, located 186 miles offshore Peninsular Malaysia, under a Production Sharing Contract with PETRONAS. The field was discovered in 1979 and began production in 2013. Full field development is on track for startup in 2017, after which the project is expected to add an incremental 20,000 barrels of oil equivalent per day of production and become a long term cash generator.

Hess is committed to help meet the world’s growing need for energy safely and responsibly while making a positive impact on the communities where it operates. The company strives each day to be a trusted partner that ensures the safety of its workforce and host communities, while protecting and preserving the environment. Every employee and contractor is empowered to stop work if necessary to achieve this outcome. Hess has a proud record of leadership in corporate citizenship and transparency and in 2016 was ranked as the No. 1 oil and gas company on Corporate Responsibility magazine’s prestigious list of 100 Best Corporate Citizens for the third consecutive year.

With its prime, industry-leading acreage position, Hess Bakken operations in North Dakota are competitive with the best shale-oil plays in the world. Hess has established more drilling spacing units in the core of the play than any other operator and its initial production rates (IPs) have continued to increase due in part to continued downspacing of wells and increased frac stages. In 2015, net production was 112,000 barrels of oil equivalent per day.

For additional information, please contact:

Lorrie Hecker, lhecker@nullhess.com