Hess Bakken production slows due to lower number of drilling rigs, maintenance – Energy Commentary


By Robb M. Stewart

The production of Hess Corp. in the third quarter fell as production in the Bakken was curtailed by plant maintenance and production in the Gulf of Mexico fell due to Hurricane Ida, the company said on Wednesday.

On Bakken onshore US:

Hess said the Bakken’s net production was 148,000 barrels of oil equivalent in the third quarter, up from 198,000 bpd a year earlier. He attributed the decline primarily to lower drilling activity through a reduction in the number of rigs to one from six in the first half of last year, lower volumes of natural gas liquids and of natural gas received under percentage of proceeds contracts with higher raw material prices, a reduction in production related to the planned maintenance overhaul of the Tioga gas plant which was completed during quarter and the second quarter sale of the non-strategic interests of Little Knife and Murphy Creek.

Net oil production was 78,000 barrels of oil per day in the third quarter of 2021 and 108,000 bpd in the previous year’s quarter, the company said. NGL and natural gas volumes received under percentage of proceeds contracts were 9,000 boe / d in the third quarter, compared to 22,000 bepd for the same period last year due to higher realized prices of NGLs which reduced the volumes received in return for gas treatment costs.

Hess said he added a second rig in February and a third rig in September, and during the third quarter he drilled 18 wells, completed 22 wells and brought 19 new wells online.

On the Gulf of Mexico off the United States:

Hess said net production from the Gulf of Mexico was 32,000 bepd, up from 49,000 bepd in the previous year quarter, mainly due to the sale of its stake in the Shenzi field in the last quarter of last year. , higher hurricane-related downtime in the third quarter of 2021, and natural decline in fields.

Net production from the Shenzi field was 9,000 bpd in the third quarter of 2020.

Off Guyana:

On the Stabroek block, where Hess has a 30% stake, net production from the Liza field was 32,000 bpd in the third quarter of 2021, compared to 19,000 bpd in the previous year quarter, the Liza field said. company.

Write to Robb M. Stewart at [email protected]

Source link


Comments are closed.