Hess Corporation, a prominent U.S. oil and gas company, has recently confirmed a significant oil discovery in the Pickerel-1 exploration well, located in the U.S. Gulf of Mexico. This promising well is situated in Mississippi Canyon Block 727. As part of their development plan, Hess is preparing to tie back this new oil discovery to the Tubular Bells production platform, which is also located in the Gulf of Mexico. The Tubular Bells field is jointly owned, with Hess holding a 57.14 percent interest and serving as the operator, while Chevron holds the remaining 42.86 percent interest.

While detailed information about the well's potential output has not been disclosed, Hess did reveal that the exploration well encountered around 90 feet of net pay in a high-quality, oil-bearing reservoir from the Miocene age. With these promising results, Hess anticipates commencing first oil production from this discovery by mid-2024. In the second quarter of 2023, the company reported a net production of 32,000 barrels of oil equivalent per day (boepd) from the Gulf of Mexico, representing growth from the previous year's quarter which saw 29,000 boepd.

The Tubular Bells deepwater oil and gas field was initially discovered in 2003 and lies in approximately 4,300 feet of water, located about 135 miles southeast of New Orleans, primarily situated on Mississippi Canyon Block 724. The project gained momentum after Hess assumed operatorship and sanctioned the plan in 2011. Impressively, the execution of the Tubular Bells project was fast-tracked, and first oil production was achieved within just three years.

Of particular note, the Tubular Bells project showcases the use of the first classic spar built in the United States. The entire design and construction process were completed domestically, generating an estimated 7,000 direct and indirect jobs in the states of Texas and Louisiana. Additionally, the extracted oil and gas are efficiently transported to shore via two separate 12-inch export lines.

This recent oil discovery adds significant value to Hess Corporation's presence and activities in the Gulf of Mexico region, reinforcing the company's commitment to expanding its production and exploration efforts in this promising area. As the new oil reserves are brought into production and integrated with the existing operations, Hess looks forward to contributing further to the energy landscape in the Gulf of Mexico.