Balance, Efficiency Key to Hess Weathering Low Oil Price Storm
Hess at this time has not announced any severance programs or cuts, Truelove noted. Instead, it is working with suppliers and contractors to find new efficiencies and ways to reduce costs. The company’s approach is not just “cut and cope”, but about smart changes in how Hess runs its business, said Truelove.
“In the end, we would like to preserve core capabilities in our staff. Who know when oil prices will recover, but we realize we need a long term view to not only weather the current storm, but to keep moving ahead.”
The fact that Hess brought the Tubular Bells project in the U.S. Gulf of Mexico on production exactly three years after it was sanctioned – on time, on budget and exceeding expectations – has given the company confidence in moving forward with the Stampede field development project in the U.S. Gulf.
“Most other offshore field development projects are behind schedule or way over budget,” said Truelove.
Last year, the company said it would proceed with the $6 billion Stampede project despite the dip in global oil prices. Hess, which will serve as operator of Stampede, will leverage the learnings it gained from the Tubular Bells project not only for Stampede, but for Hess projects offshore Ghana and Australia, where Hess is looking to sanction projects over the next two years, including the Equus field offshore Western Australia, where the company drilled the first successful offshore horizontal well, and the Deepwater Tano/Cape Three Points license offshore Ghana.
First oil is expected in 2018 from Stampede, whose production facilities will consist of subsea production and injection wells tied back to a single tension leg platform (TLP). Gross topsides processing capacity for the project is around 80,000 barrels per oil per day and 100,000 barrels of water injection per day. The Stampede TLP, which will be anchored in 3,600 feet of water, will be built at Samsung shipyard in South Korea. Diamond Offshore newbuilds Ocean BlackLion (UDW drillship) and Ocean BlackRhino (UDW drillship) will be working in parallel at Stampede.
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