John B. Hess, Chairman and Chief Executive Officer, said, "Our 2007 Capital and Exploratory Budget focuses on attractive investment opportunities in support of our strategy to sustain profitable growth for our shareholders. This program reflects capital discipline and our commitment to maintaining a strong financial position."
The 2007 program of $3.5 billion targeted for Exploration and Production includes $1.4 billion for field developments, $1.2 billion for production projects, and $900 million for exploration activities.
Field developments in 2007 include:
Funds are also provided for development of the Residual Oil Zone (ROZ) at the Seminole-San Andres Unit in West Texas and the redevelopment of the Valhall Field in Norway.
Production expenditures of $1.2 billion are primarily for improving performance of existing fields located in the United States, the North Sea, Africa and Southeast Asia.
Exploration and exploitation expenditures are estimated to be about $900 million in 2007. Approximately $550 million is for drilling, including appraisal wells for the Pony and Tubular Bells discoveries in the deepwater Gulf of Mexico. The balance is for seismic acquisition and other activities.
Capital expenditures in 2007 for Marketing and Refining, at approximately $75 million, will fund expansion of the Hess retail network and the addition of convenience stores to existing retail facilities.
2007 Estimated Capital and Exploratory Expenditures ($ Millions) By Segment: By Region: ----------------------------- ------------------------------- Exploration and Production Exploration and Production Developments $1,400 United States $1,290 Production 1,200 Europe 650 Exploration 900 Africa 600 -------- Asia and Other 960 ------- Total Exploration and Production $3,500 $3,500 ======= Marketing and Refining 75 Corporate 25 -------- Total $3,600 ========
Hess Corporation, with headquarters in New York, is a global, integrated energy company engaged in the exploration, production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum products.
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