(Adds details, shares)
Jan 12 Hess Corp budgeted $2.25 billion
for exploration and production this year, higher than the $1.9
billion it spent in 2016, in one of the first signs that the
shale industry will spend more in 2017 after years of declines.
Shares of the company, which also said it would record
charges of more than $4.6 billion in the fourth quarter, were
down nearly 6 percent at $58.31 at market open on Thursday.
Barclays said on Monday it expects global oil and gas
companies to raise exploration and production spending by 7
percent this year.
Oil prices are recovering after a more than two-year slump,
partly due to an agreement OPEC signed in November to curb
Hess said it would deploy four more rigs in North Dakota's
Bakken field this year, develop a field in Guyana and restart
drilling at the Valhall Field in Norway.
These moves are expected to help the company increase
production by 8-12 percent between the beginning of 2017 and
The company said it expects net production to average
300,000-310,000 barrels of oil equivalent per day (boe/d) in
2017, excluding Libya, with Bakken output accounting for almost
a third of total production.
Hess had estimated 2016 production of 315,000-325,000 boe/d.
The company in a separate statement said drilling results
from a third exploration well offshore Guyana had shown a new
reservoir containing 100-150 million barrels of oil equivalent.
The charges to be included in fourth-quarter results include
adjustments for tax valuation and deferred development of two
natural gas fields, among others.
(Reporting by Swetha Gopinath and Komal Khettry in Bengaluru;
Editing by Shounak Dasgupta)