Hess Approves $4.4 Billion Capital and Exploratory Budget for 2008

Hess Corporation has approved a $4.4 billion capital and exploratory expenditure budget for 2008. Approximately $4.3 billion is targeted for Exploration and Production, with $1.6 billion for production, $1.5 billion for field developments and $1.2 billion for exploration.

John B. Hess, Chairman and Chief Executive Officer, stated, "We are fortunate to have attractive investment opportunities for the future. We will invest our cash flow in a disciplined manner to sustain long-term profitable growth for shareholders."

John O'Connor, President of Worldwide Exploration and Production, said, "We have a well-balanced Exploration & Production plan for 2008 that is consistent with our long-term target of growing reserves 5 to 8 percent per year and production 3 to 5 percent per year. Our exploration program has the potential to increase the company's hydrocarbon resources and create significant value for our shareholders."

Production expenditures of $1.6 billion include improvements in the following areas.

Bakken Shale in North Dakota's Williston Basin. Hess will increase the number of drilling rigs to eight from six and expand facilities for crude oil production.

Okume Complex - a Hess operated offshore oil development in Equatorial Guinea (85 percent Hess working interest). The company will drill additional production and water injection wells.

JDA - a gas development in the Malaysia-Thailand Joint Development Area (JDA) in the Gulf of Thailand (50 percent working interest). Investments include installation of wellhead platforms and the drilling of production wells.

Field expenditures of $1.5 billion include the following developments.

Shenzi - a deepwater Gulf of Mexico oil and gas development (28 percent working interest). Production wells will be drilled throughout the year and the tension leg platform and topsides will be installed in the second quarter. Production is on schedule to commence by mid-2009.

Valhall - an oil and gas field in Norway (28 percent working interest). Redevelopment of the field is ongoing.

Ujung Pangkah - a Hess operated oil and gas development in East Java, Indonesia (75 percent working interest). Phase 2 of the plan is the development of oil reserves. Oil production is on schedule to commence in early 2009.

Exploration and exploitation expenditures of $1.2 billion include appraisal drilling in the Hess-operated Pony discovery (100 percent working interest) as well as the Tubular Bells discovery (20 percent working interest) in the deepwater Gulf of Mexico. Other 2008 exploration prospects include four initial exploratory wells on Block WA-390-P in the Northwest Shelf of Australia and one well each in Block 54 offshore Libya, the Cape Three Points South Block offshore Ghana, and the BMS-22 Block in the Santos Basin offshore Brazil. Expenditures are also budgeted for geological and geophysical activities.