Hess to tap into deep Gulf of Mexico waters

Upstream-focused energy company Hess Corp. said it launched development plans for its deepwater Stampede project in the Gulf of Mexico.

Hess said it expects to pull at most 80,000 barrels of oil per day from the Stampede project in the Green Canyon reserve area of the Gulf of Mexico, about 115 miles south of Louisiana. Total estimated recoverable reserves for Stampede area estimated at between 300 million and 350 million barrels of oil equivalent.

The company said Tuesday it plans to drill as many as six production wells in the Stampede developing starting in early 2015. First production from the field is expected by 2018.

Hess owns Stampede alongside its program partners at Norwegian energy company Statoil, the U.S. subsidiary of Chinese-controlled Nexen and Union Oil Co. of California, a unit of Chevron.

Hess said Stampede represents a $6 billion investment during a period when oil prices are at historic lows.

The company, which has headquarters in New York, said last year it was working to transform into an exploration and production company after it left the refining business by closing a facility in New Jersey. It sold its entire retail sector of gasoline stations and convenience stores to Marathon Petroleum Corp. in June.

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