Monday, April 11, 2011

Hess Corporation Announces Capital and Exploratory Budget of US$ 5.6 billion for 2011; More than 35 percent are devoted to Unconventional Oil projects

Hess announced 2011 capital and exploratory budget of US$ 5.6 billion, of which US$ 3.1 billion for production, US$ 1.6 billion for developments and US$900 million for exploration. More than 35 percent of capital and exploratory expenditures in 2011 are devoted to unconventional oil projects. The company also plans to increase reserves and production by atleast 3% a year.
Production expenditures of approximately US$ 3.1 billion include:

Bakken oil shale in North Dakota, where Hess plans to operate 15 rigs and expand production facilities
- Drilling production and water injection wells at Valhall (Hess 64% working interest) in Norway and Shenzi (Hess 28%) in the deepwater Gulf of Mexico
- Well workovers and completions at Ceiba and Okume Complex (Hess 85% - operator) in Equatorial Guinea

Field development expenditures of US$ 1.6 billion include:

- Expansion of the Tioga Gas Plant and construction of a crude oil rail loading and storage facility to support the development of the Bakken oil shale in North Dakota
- Field redevelopment work at Valhall to increase production capacity and extend field life by 40 years is expected to be completed during 2011
Pony (Hess 100 percent - operator) and Tubular Bells (Hess 40 percent - operator) in the deepwater Gulf of Mexico, where engineering and design work is progressing

Exploration expenditures are budgeted at US$ 900 million, including:
- Conventional deepwater drilling in Egypt, Ghana, Indonesia and Brunei
- Unconventional onshore drilling in the Eagle Ford Basin in Texas and the Paris Basin in France

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