Hess To Proceed With $6B US Oil Project Despite Price Dip
HOUSTON, Oct 28 (Reuters) - U.S. independent oil company Hess Corp. said on Tuesday it would proceed with the development of the $6 billion Stampede project in the U.S. Gulf of Mexico, one of the biggest energy investments announced during the current oil price slump.
Hess, the operator of the deepwater project, has a 25 percent stake in Stampede. A unit of Chevron Corp, Norway's Statoil and Nexen Petroleum Offshore will also each hold a 25 percent stake.
Hess said first production from the project is expected in 2018. By then, the market may well have recovered from a dip that has cut the price of barrels by more than 20 percent since June to around $80 each.
Total estimated recoverable resources for Stampede, located about 115 miles (185 km) south of Fourchon, Louisiana, are estimated in the range of 300 million to 350 million barrels of oil equivalent.
Gross processing capacity for the Stampede project is some 80,000 barrels of oil per day.
By comparison, Chevron's massive Jack/St. Malo project in the U.S. Gulf of Mexico, approved in 2010, has a design capacity of 170,000 barrels of oil per day plus natural gas.
(Reporting By Terry Wade; Editing by Alan Crosby)
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