Oil, gas producer Hess earns US$2 billion on Norway sale; to focus on Guyana

Hess Corporation, a co-venture partner in the development of the Liza oilfield offshore Guyana, has announced several additional steps in the execution of its strategic plan to further focus on the company’s portfolio in Guyana.

The company reported that it was selling off its oil and gas interests in Norway for total proceeds of $2 billion. In addition, it has commenced the process to sell interests in Denmark, while it’s implementing a cost reduction program expected to deliver annual cost savings of more than $150 million starting in 2019.

“With the continued success of our asset sale program, we are focusing our portfolio on higher return assets and reducing our breakeven oil price,” CEO John Hess said.

He added: “Proceeds from these asset sales, along with cash on the balance sheet, will prefund development of our world class investment opportunity in offshore Guyana, where we have participated in one of the world’s largest oil discoveries of the past decade – positioning our company to deliver more than a decade of cash generative growth and significant value for our shareholders.”

Meanwhile, Hess Corporation has reported a bigger quarterly loss as the company’s production fell.

Net loss attributable to Hess was $624 million at the end of September compared with a loss of $339 million last year.

The company said the third quarter results included an impairment charge of $2.5 billion.

The Stabroek Block,which Exxon and its partners are developing, is located approximately 120 miles offshore Guyana, is 6.6 million acres (26,800 square kilometers).

The block is equivalent in size to 1,150 Gulf of Mexico blocks and contains multiple prospects and play types representing additional multibillion barrel unrisked exploration potential.

Esso E&P Guyana Ltd is the operator and has a 45 percent working interest, while Hess Guyana Exploration Ltd has 30 percent interest and CNOOC Nexen Petroleum Guyana Ltd. has 25 percent interest.

Exxon Mobil in June said it and partners would spend $4.4 billion to develop part of the oilfield.