Hess Wins 2018 Platts Global Energy Award for ‘Remarkable Execution Skills’ on Stampede Project
Hess Corporation Logo header
SEARCH

Hess Wins 2018 Platts Global Energy Award for ‘Remarkable Execution Skills’ on Stampede Project

  • PlattsAwardImage_cropped
12.07.2018

Hess won the 2018 Platts Global Energy Award for Construction Project of the Year for its Stampede project, a deepwater oil and gas development in the Gulf of Mexico.

Hess bested 14 finalists from around the globe to dominate a category that judges said showcased the company’s “remarkable execution skills.” Judges described Stampede as a “sound investment” that positions Hess well for continued success.

They were impressed by the project’s innovation in its approach and all-around excellence in implementation, noting that Hess identified a critical opportunity, quickly moved to propose and finance new facilities and dealt with daunting technological issues before and during construction to bring the project online.

Despite difficult market timing, Hess completed the $6.2 billion Stampede project six months ahead of schedule and $800 million under budget — achieving first oil in early 2018, three years after project sanction.

Hess was one of 21 companies and individuals honored for exemplary leadership, innovation and performance at the 20th annual S&P Global Platts Global Energy Awards Dec. 6. Described in the industry as the Oscar Awards of Energy, the program attracted entries from dozens of energy companies from 10 countries on five continents.

The awards were presented at a gala black-tie ceremony at Cipriani Wall Street in lower Manhattan. Nearly 500 energy and finance executives attended the event, hosted by CNBC Television Energy Correspondent Jackie DeAngelis.

Judges praised Hess’ “incredibly well executed” engineering and project management on the "huge project with large-scale challenges." Located in approximately 3,500 feet of water with a reservoir depth of 30,000 feet — approximately the height of Mount Everest — Stampede is one of the deepest in the Gulf of Mexico.

In these extreme depths, the Hess team knew that understanding and predicting the reservoir's behavior was key to the project’s success, the judges noted.

They agreed Hess harnessed its extensive project management skills to assess challenges including reservoir compartmentalization, stratigraphic complexity and fluid contact uncertainty and create a "base case" development plan.

Hess innovations on the project included the first successful installation of a tension leg platform in the Gulf of Mexico in four years. Hess was also the first at this depth to employ dual-zone "smart well" technology, akin to having two wells in one well bore.

Stampede was safely delivered by 4,500 workers working more than 14 million manhours and achieved top quartile performance in offshore drilling and project delivery.

“Our performance is driven by a distinctive Lean culture that equips and empowers people at every level to solve problems and spot opportunities for continuous improvement and innovation,” the award entry noted.

 


Related News
  • Hess Recognized for Strong Management and ESG Leadership

    Hess has been recognized for strong management and environmental, social and governance (ESG) leadership in recent months. “We see sustainability as fundamental to our long term strategy and performance, supporting our purpose to be the world’s most trusted energy partner," said CEO John Hess.
    Full story
  • Hess Reports Estimated Results for the Fourth Quarter of 2019

    Hess today reported a net loss of $222 million, or $0.73 per common share, in the fourth quarter of 2019, compared with a net loss of $4 million, or $0.05 per common share, in the fourth quarter of 2018. On an adjusted basis, the Corporation reported a net loss of $180 million, or $0.60 per common share, in the fourth quarter of 2019, compared with an adjusted net loss of $77 million, or $0.31 per common share, in the prior-year quarter.
    Full story
  • Hess Announces 2020 E&P Capital and Exploratory Budget

    Hess today announced a 2020 Exploration & Production capital and exploratory budget of $3.0 billion, of which more than 80% will be allocated to high return investments in Guyana and the Bakken. ​ Net production is forecast to average between 330,000 and 335,000 barrels of oil equivalent per day in 2020, excluding Libya. Bakken net production is forecast to average approximately 180,000 barrels of oil equivalent per day in 2020.
    Full story