Hess Q3 Production Falls 23% on Asset Sales, Extended Shutdowns
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  • Hess announced a 23% YoY fall in production to 310 MBOE/d. The decrease was due to asset sales in Russia, UK North Sea and Azerbaijan (83 MBOE/d), extended shutdowns in GoM and lower production in Libya (23 MBOE/d), and maintenance and declines (24 MBOE/d).The reductions were partially offset by rising production at Valhall...

    Hess announced a 23% YoY fall in production to 310 MBOE/d. The decrease was due to asset sales in Russia, UK North Sea and Azerbaijan (83 MBOE/d), extended shutdowns in GoM and lower production in Libya (23 MBOE/d), and maintenance and declines (24 MBOE/d).

    The reductions were partially offset by rising production at Valhall field, offshore Norway (up by 30 MBOE/d), and Bakken (up by 8 MBOE/d).

    Q3-2013 operational highlights

    • Bakken: Production rose 14% YoY to 71 MBOE/d; guidance remains unchanged at 64-70 MBOE/d
    • Valhall, offshore Norway: Production of 37 MBOE/d, up from 7 MBOE/d in Q3-2012; full year production expected at lower end of the guidance of 24-28 MBOE/d
    • Kurdistan: First exploration well spud in Shakrok Block; a second well, on the Dinarta Block, due to be spud in Nov-2013
    • Divestiture processes advanced for upstream assets in Indonesia and Thailand

    Q3-2013 financial highlights

    • Net profit down 25% YoY to $420 million
    • Total revenue of $2.7 billion, down 23% YoY
    • Capex of $1.5 billion, down 35% YoY

    2013 guidance

    • Capex expected to be 18% YoY lower at $6.8 billion
    • Production to be at the lower end of its guidance of 340-355 MBOE/d due to unrest in Libya

    View Hess press release