Oil and gas company Hess Corporation has allocated $1.9bn of its 2021 exploration and production capital and exploratory budget for project developments offshore Guyana and the Bakken.

Of the total budget, $670m (35%) has been allocated for production, $780m (41%) for offshore Guyana developments, and $450m (24%) for exploration and appraisal activities.

In 2021, the firm estimates net production to average approximately 310,000 barrels of oil equivalent per day, excluding Libya.

Hess Corporation CEO John Hess said: “The majority of our 2021 budget is allocated to Guyana, where our three sanctioned oil developments have a Brent breakeven oil price of between $25 and $35 per barrel, and to the Bakken, where we have a large inventory of future drilling locations that generate attractive financial returns at current prices.

“By investing only in high-return, low-cost opportunities, we have built a differentiated portfolio of assets that we believe will provide industry-leading cash flow growth over the course of the decade.”

Hess Corporation chief operating officer Greg Hill said: “In the Bakken, we plan to add a second rig during the first quarter, which will allow us to sustain production and cash flow generation from this important asset.”

The firm plans to invest $25m for the Liza Phase 1 development on the Stabroek Block in Guyana (Hess 30%). In December, the Liza Phase 1 produced 120,000 gross barrels of oil per day.

The company also allocated $450m for the Liza Phase 2 development offshore Guyana with a capacity of up to 220,000 gross barrels of oil per day. Production is planned to commence in early 2022.

A further $235m is assigned for the Payara development offshore Guyana with a capacity of up to 220,000 gross barrels of oil per day. First oil production is planned in 2024.

The firm will invest a further $70m for front-end engineering and design work for future development phases on the Stabroek Block.

Hess will also invest $450m to drill 12 to 15 exploration and appraisal wells on the Stabroek Block.

This includes well planning on Block 42 in Suriname (Hess, 33.3%) and seismic acquisition and processing in Guyana and the Deepwater Gulf of Mexico.

Last year, Hess Corporation completed the sale of its 28% working interest (WI) in the Shenzi field for a total consideration of $505m.