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Hess banks on Guyana; selling off assets to raise funds for Liza1


 

Norway (chron.com) – With $2.7 billion in oilfield sales this week, Hess Corp. is making a calculated bet, giving up steady production today to help fund what could be one of the world’s biggest discoveries into the next decade.
The oil explorer with operations on five continents said Tuesday, that it’s selling North Sea assets off Norway for $2 billion and seeking a buyer for wells off of Denmark. The news came a day after Hess sold drilling rights in offshore Equatorial Guinea for $650 million.
Counting a June deal to sell properties in Texas, the New York-based company has sold off almost $3.3 billion in assets this year.
With the makeover, Hess is building a war chest to help develop a discovery off the coast of Guyana in South America that may hold the equivalent of 2.5 billion barrels of oil, according to company estimates.
Its partner in the project, Exxon Mobil Corp., has said the initial building phase may cost $4.4 billion and take until 2020 to deliver its first oil. The payoff: More than a decade of growth for Hess shareholders.
The divestments “all make strategic sense” and “will help bridge the sizable funding gap that Hess faces over the next few years,” Capital One Securities analyst Phillips Johnston said in a note to clients Tuesday.
“These assets have not been competing for capital, so by monetizing them, Hess will prefund part of the development of its major Guyana discoveries.”
Still, there’s a trade-off, Johnston said. Hess is giving up operations that produced 16 percent of its total oil volumes and almost a quarter of its earnings before interest, taxes, depreciation and amortization, he said.
Hess is due to announce its third-quarter earnings on Wednesday. After opening the day up, the shares fell 2.4 percent to $44.14 at 12:34 p.m. in New York trading. Before Tuesday, the shares had fallen 27 percent for the year, putting them among the ten worst performances on the S&P 500 Energy Index.

An aerial view of the Tubular Bells production facility, which is operated by Hess. Chevron has a working interest in the project.

Hess had telegraphed its North Sea sales, so investors may have discounted some of the gains, said Charles Robertson, a Cowen & Co. analyst in New York. The total sales proceeds are also more than the explorer’s projected share of the Guyana project, and some may question whether the company was selling too much, he wrote in a research note. Hess has estimated that its share of the project’s initial phase will be about $1 billion.
Robertson sees other uses for the money as well. It could help Hess expand drilling in the Bakken shale basin in North Dakota, the analyst said, and with exploration in Guyana set to continue, “These sales give Hess financial flexibility to develop future discoveries.”
Hess, in a statement, said there would be other benefits: $500 million of the proceeds will be used to retire debt next year and the company also gets to cancel $3.2 billion in liabilities for closing and cleaning up the operations it’s selling.
Hess also announced a goal of cutting $150 million in annual expenses, a plan that will lower its per-barrel production costs 30 percent by 2020, it said.
“We are focusing our portfolio on higher return assets and reducing our break-even oil price,” Chief Executive Officer John Hess.

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Re: title of this thread. There are things better than money, things that are priceless, things that are honorable, like respecting citizens' right to vote in free and fair elections. That's what is questionable about GECOM now.

FM

Trotwoman is the biggest thief, his pocket is overflowing and toilet paper KN is silent. Antiman Moses is busy counting his few pieces of silver given the him by the Monster and Devil Granger.

FM
Last edited by Former Member

Thiefmen only care for their own pocketbooks.

Is this the change that the AFC/PNC liars campaigned on ? They need to be held accountable for their promises and actions.

FM
Last edited by Former Member
yuji22 posted:

Thiefmen only care for their own pocketbooks.

Is this the change that the AFC/PNC liars campaigned on ? They need to be held accountable for their promises and actions.

has any politician ever been held accountable for their actions in Guyana?

Stop daydreaming, it's not going to happen...

FM
yuji22 posted:

A note as of Today, the C word is allowed to be used freely at GNI and as such the word Blackman is term of equal value.

 

Chiefsta is out of line,don't follow him.

Django
Last edited by Django
yuji22 posted:

A note as of Today, the C word is allowed to be used freely at GNI and as such the word Blackman is term of equal value.

 

collie has been used here since inception....

It's all a matter of context

FM

So the oil money gets split between Hess, Exxon and a Chinese Company. A portion then goes to a few PNC elites and the people gets nothing.  

This article is about the prospects for Hess shareholders.   

Chief ain’t too bright to figure this out.  He gets solace in using the ‘c’ word.  

 

alena06
RiffRaff posted:
Django posted:
RiffRaff posted:

We need to focus how to get our hands on some of that money

Looks like you want to remigrate.

nah...just figure out what are the opportunities

Me thinks we all did well in the ole USA,let the Guyanese in the homeland share the spoils,they need a good leader for that to be accomplished.

Django

Chief,show by example , you go and pave the way so others may follow. Trinidad has oil, yet the crime and unemployment is high. The Blackman and the coolies in Guyana don't have the skills to earn jobs in the oil industry. All the top personnels will be coming from the USA, the low paying ,high risk jobs will be given to Guyanese, such as oil platform cleaners etc,.

K
Gilbakka posted:

Re: title of this thread. There are things better than money, things that are priceless, things that are honorable, like respecting citizens' right to vote in free and fair elections. That's what is questionable about GECOM now.

Agree!!

However two things:

1. Indians will survive and will find a way to survive even under dictatorship. When the PNC banned items look which ethnic group survived the best.

2. Indians love to bribe hence corruption and they will survive once again.

Chief
Drugb posted:

Chief how does this benefit Guyanese if thiefman Granger et al will steal all oil money for their own pockets?

Read my response to Glly.

Druggie take a chill pill you are allowing the Granger and the PNC to consume you.

Almost all your posts is about Granger.

His time will come to an end when our American Govt feel that it should end.

Chief
Chief posted:
Gilbakka posted:

Re: title of this thread. There are things better than money, things that are priceless, things that are honorable, like respecting citizens' right to vote in free and fair elections. That's what is questionable about GECOM now.

Agree!!

However two things:

1. Indians will survive and will find a way to survive even under dictatorship. When the PNC banned items look which ethnic group survived the best.

2. Indians love to bribe hence corruption and they will survive once again.

r@ss banna now you saying we are corrupted,not all Chiefsta.

Django
Gilbakka posted:

Re: title of this thread. There are things better than money, things that are priceless, things that are honorable, like respecting citizens' right to vote in free and fair elections. That's what is questionable about GECOM now.

People like Chief are inclined to the ways of the PNC!!!

Nehru
Chief posted:
Gilbakka posted:

Re: title of this thread. There are things better than money, things that are priceless, things that are honorable, like respecting citizens' right to vote in free and fair elections. That's what is questionable about GECOM now.

Agree!!

However two things:

1. Indians will survive and will find a way to survive even under dictatorship. When the PNC banned items look which ethnic group survived the best.

2. Indians love to bribe hence corruption and they will survive once again.

Talk about asinine thinking and backward thinking. Only Chief can formulate such CRAP!!!

Nehru
Nehru posted:
Chief posted:
Gilbakka posted:

Re: title of this thread. There are things better than money, things that are priceless, things that are honorable, like respecting citizens' right to vote in free and fair elections. That's what is questionable about GECOM now.

Agree!!

However two things:

1. Indians will survive and will find a way to survive even under dictatorship. When the PNC banned items look which ethnic group survived the best.

2. Indians love to bribe hence corruption and they will survive once again.

Talk about asinine thinking and backward thinking. Only Chief can formulate such CRAP!!!

WE appreciate you exposing yourself!!

 

Nehru
Django posted:
yuji22 posted:

A note as of Today, the C word is allowed to be used freely at GNI and as such the word Blackman is term of equal value.

 

Chiefsta is out of line,don't follow him.

Dem PPP bhias will drop your pants and put some  lash pon you!

Chief
RiffRaff posted:

We need to focus how to get our hands on some of that money

Definitely!!

One of my pardnas from Corriverton already came to Louisiana and and bought two boats and ship it down to Guyana. He is hoping to get the contract  for supplies and transportation. to the oil rigs out at sea.  

Chief
alena06 posted:

So the oil money gets split between Hess, Exxon and a Chinese Company. A portion then goes to a few PNC elites and the people gets nothing.  

This article is about the prospects for Hess shareholders.   

Chief ain’t too bright to figure this out.  He gets solace in using the ‘c’ word.  

 

Good morning Alena 

I am happy I am not so bright. Let me remain this way !

Bet me   "Coolie entrepreneurs " WILL ENRICH THEMSELVES FROM THIS OIL DEAL.

Chief
kp posted:

Chief,show by example , you go and pave the way so others may follow. Trinidad has oil, yet the crime and unemployment is high. The Blackman and the coolies in Guyana don't have the skills to earn jobs in the oil industry. All the top personnels will be coming from the USA, the low paying ,high risk jobs will be given to Guyanese, such as oil platform cleaners etc,.

Morning KP.

That's true in terms of the jobs. I think you will find quite a number of  Trinis who will fill the skilled  positions.

A clean Government will ensure that some of the spoils will be enjoyed by the local citizens. The two main political party does nit have a good track record as to clean.

Chief
Chief posted:
Django posted:
yuji22 posted:

A note as of Today, the C word is allowed to be used freely at GNI and as such the word Blackman is term of equal value.

 

Chiefsta is out of line,don't follow him.

Dem PPP bhias will drop your pants and put some  lash pon you!

Chiefsta Django is no walk over,will whip their r@ss,i am aware they gang up.

Django
Last edited by Django
Nehru posted:
Gilbakka posted:

Re: title of this thread. There are things better than money, things that are priceless, things that are honorable, like respecting citizens' right to vote in free and fair elections. That's what is questionable about GECOM now.

People like Chief are inclined to the ways of the PNC!!!

Marning Buddy Nehru

 

 

Chief
Nehru posted:

When one does not have respect and pride for one's identity, that person is less valuable as a human than SHIT!!!

You and Jagdeo!

When all you use eat all the freeness and drink piss with the Guyanese people credit card, that was okay?

Chief
Nehru posted:

Obviously you need comprehension lessons, you are indeed a dunce!!!

Thank you Sir!

How far does one have to go in school to recognize that you love a freeness?

Chief
Last edited by Chief
Chief posted:
alena06 posted:

So the oil money gets split between Hess, Exxon and a Chinese Company. A portion then goes to a few PNC elites and the people gets nothing.  

This article is about the prospects for Hess shareholders.   

Chief ain’t too bright to figure this out.  He gets solace in using the ‘c’ word.  

 

Good morning Alena 

I am happy I am not so bright. Let me remain this way !

Bet me   "Coolie entrepreneurs " WILL ENRICH THEMSELVES FROM THIS OIL DEAL.

Anyone with half a brain would not put GECOM in the heading of this thread.  And not one coolie entrepreneur will get one cent from this oil deal.  The profits will be among Exxon, Hess, and CNOOC.  Those three will throw Trotman a bone to keep him happy.

Bibi Haniffa
Last edited by Bibi Haniffa
Bibi Haniffa posted:

Anyone with half a brain would not put GECOM in the heading of this thread.  And not one coolie entrepreneur will get one cent from this oil deal.  The profits will be among Exxon, Hess, and CNOOC.  Those three will throw Trotman a bone to keep him happy.

Brain or no brain, money will flow down to Guyanese.

Mark my words Indians will make money on this.

Chief
RiffRaff posted:
yuji22 posted:

A note as of Today, the C word is allowed to be used freely at GNI and as such the word Blackman is term of equal value.

 

collie has been used here since inception....

It's all a matter of context

Does this make it right to use this dehumanizing word?Does the same apply to the N..... word also?

.

Z
Chief posted:
Bibi Haniffa posted:

Anyone with half a brain would not put GECOM in the heading of this thread.  And not one coolie entrepreneur will get one cent from this oil deal.  The profits will be among Exxon, Hess, and CNOOC.  Those three will throw Trotman a bone to keep him happy.

Brain or no brain, money will flow down to Guyanese.

Mark my words Indians will make money on this.

No waaaaay.  Indians will not get one penny on this.  Watch CNOOC, they have more money than Hess and Exxon combined.  I am predicting a buyout by CNOOC in a couple of years as the price of oil continue to slump and Renewable Energy becomes popular on the world markets.

Bibi Haniffa

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