Hess, Conoco Raise 2019 Production Outlook

By Laharee Chatterjee
Monday, December 10, 2018

Oil and gas producer Hess Corp and Conocophillips both expect production for 2019 to be higher than this year even as they spend roughly the same amount of money on exploration, the companies said on Monday.

Investors have been urging U.S. oil companies to increase returns on tight spending at a time when they are also looking beyond the Permian Basin, which is getting crowded and costly.

Hess said the lion's share of its 2019 capital expenditure will go towards exploration in Guyana and Bakken. Conoco will spend most of its capex in Alaska and Canada, it said.

The 2019 production views come as global oil markets struggle with oversupply, resulting in producer group OPEC and other key exporters agreeing to cut their crude output from January.

Production in the United States, however, is expected to rise to a record high 10.9 million bpd in 2018 and 12.1 million bpd in 2019.

For Hess, production is expected to range between 270,000 and 280,000 barrels of oil equivalent per day (boep/d) excluding Libya, up from the 255,000 boep/d it expects in 2018, while ConocoPhillips was aiming to produce 2.0-2.6 percent more oil and gas next year.

Both kept their capital spending budget roughly flat - $2.9 billion for Hess and $6.1 billion for Conoco.

"As we focus spending on our high return investment opportunities, we will continue to reduce our unit costs to drive margin expansion and improve profitability," Hess Corp Chief Executive Officer John Hess said in a statement on Monday.

Last week, oil major Chevron Corp increased its spending budget for the first time in four years. The company said it plans to spend more on shale production next year, as well as in refining and chemicals.


(Reuters, Reporting by Laharee Chatterjee in Bengaluru Editing by Saumyadeb Chakrabarty)

Categories: Offshore Energy Drilling Subsea Activity Exploration Production

Related Stories

Petronas to Leverage AI to Expedite Oil and Gas Exploration Activities

Chinese Contractor Secures Offshore Oil and Gas ‘Mega Deal’ from QatarEnergy

Saipem Bags $1.5B Contract for Türkiye Largest Offshore Gas Field

PTTEP Hires McDermott for Deepwater Subsea Job off Malaysia

Saipem Wins FEED Contract For Abadi LNG Project FPSO Module In Indonesia

Shelf Drilling Lands New Jack-Up Contract in Vietnam, Extends Egypt Deal

Allseas-Boskalis Consortium Bags $1.4B Offshore Gas Pipeline Job in Taiwan

CNOOC Brings New Offshore Gas Field On Stream

Sapura Scoops Over $118M for Chevron, PTTEP Subsea Ops off Thailand

China Rolls Out 17MW Floating Wind Turbine Prototype

Current News

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com