Hess Looks to 3Q Malay Gas Launch
Hess reported a net 1Q loss of $324mn on April 26, less than its $509mn net loss in 1Q2016, as it looked ahead to higher production later in the year.
Production in 1Q was 307,000 barrels of oil equivalent per day excluding Libya, of which the US Bakken produced 99,000 boe/d; the headline figure was 12% lower than Hess's 1Q2016 production of 350,000 boe/d.
Those figures included worldwide gas production in 1Q of 484mn ft3/d – of which 234mn in the US, 212mn in Asia and 38mn in Europe – down 15% from a 1Q2016 gas total of 571mn ft3/d; average realised natural gas selling price in 1Q2017 was $3.20/'000 ft3, versus $3.42 in 1Q2016.
“Production momentum returns to our portfolio starting in the second half of 2017,” CEO John Hess noted, citing the company's North Malay Basin (NMB) development in which Hess is operator with 50% equity, partnered by Malaysian state Petronas also with 50%, which should boost gas output.
North Malay Basin block PM302 is 186 miles (300 km) offshore Peninsular Malaysia in the Gulf of Thailand (Map credit: Hess)
Topsides for NMB central processing platform were shipped to the Malaysian offshore field and installed on the platform, commissioning of which is now underway, with the final 14th well of the Phase I development drilling completed in 1Q. The floating production vessel (FPSO) is due to arrive at the field 2Q, with production scheduled to begin in 3Q, the company said.
NMB production capacity, after project completion, is expected to quadruple to 400mn ft3/d; the asset comprises nine gas fields with a total gross recoverable resource of over 1.5 trillion ft3 and more than 20mn bbls condensate.
Mark Smedley