U.S. exploration and production company Hess Corp. said Tuesday that most of its spending for the year will target just two assets -- the Bakken shale formation and offshore Guyana.

Guyana is quickly emerging as a future exporter of crude oil, though it's the Bakken formation in the United States where Hess expects more production. The company on Tuesday outlined a spending program for the year of $3.7 billion, of which 80% will focus on just those two reserves.

"More than 80% of our 2023 budget is allocated to Guyana, which is positioned to be one of the highest margin, lowest carbon intensity oil developments in the world, and to the Bakken, our largest operated asset where we have a robust inventory of high-return future drilling locations," CEO John Hess said.

Hess in 2018 characterized the Stabroek reserve off the coast of Guyana as a "massive world-class resource" that holds as much as 4 billion barrels of oil equivalent. While off from its historic highs, the Bakken formation is expected to help North Dakota production average 1 million barrels per day for 2023.

Hess expects its production to average between 355,000 and 365,000 barrels of oil equivalent for 2023. Guyana is expected to yield 100,000 barrels per day, while the Bakken should see a range between 165,000 and 170,000 bpd.

In terms of spending, roughly half -- some $1.7 billion -- is allocated for Guyana.

Spending on new exploration and production has taken a backseat to the pursuit of shareholder returns, a lingering concern given the supply-side pressures that have gripped the broader market since the outbreak of war in Ukraine.

Lorenzo Simonelli, the CEO at Baker Hughes -- a firm that supports exploration and production activity -- said this week that investments remain at a premium.

"With years of under investment now being amplified by recent geopolitical factors, global spare capacity for oil and gas has deteriorated and will likely require years of investment growth to meet forecasted future demand," he said.

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