Hess Increases 2017 E&P Budget to $2.25 Billion

Hess Corporation has announced it will increase E&P spending for 2017, including adding more Bakken rigs. 

Related: Hess Adds Bakken Rigs

For 2017, Hess plans to spend $2.25 billion for E&P activity, a hefty increase from the $1.9 billion spent in 2016. The company will allocate that money to the following: 

  • $700 million for unconventional shale resources
  • $375 million for production
  • $825 million for developments
  • $350 million for exploration and appraisal activities
  • $425 million of its development budget will be used to drill two wells and complete three wells, install the tension leg platform and progress development of the Stampede Field in the deepwater Gulf of Mexico to achieve first oil in 2018.
We’re excited about the year ahead. With oil prices starting to recover, we will ramp up our Bakken rig count from two currently to six by year end. We plan to resume drilling at the Valhall Field from the existing platform rig and we will continue to progress our two offshore developments to first production, which will add a combined 35,000 boepd once online.
— President and COO Greg Hill

Hess will also add additional rigs in the Bakken and proedicts the region's net production in 2017 is forecast to average between 95,000 and 105,000 boepd.

Fourth Quarter Highlights

Fourth quarter results include a noncash charge of $3.8 billion to “establish valuation allowances against net deferred tax assets as of December 31, 2016, as required under accounting standards following a three-year cumulative loss.”

Read more at hess.com