Hess Tags Most of $3.9B Budget for E&P Activities in 2010

Hess has announced today a $3.9 billion capital and exploratory budget for 2010, nearly all of which is targeted for Exploration and Production: $2.4 billion for production, $600 million for developments and $850 million for exploration.

John B. Hess, Chairman and CEO, stated, "We are fortunate to have a strong portfolio of attractive investment opportunities. We will invest in a disciplined manner to sustain long-term profitable growth for shareholders and expect to fund our 2010 program from internally generated cash flow."

Greg Hill, President of Worldwide Exploration and Production, said, "We have a balanced Exploration and Production plan that is consistent with our long-term target of growing both reserves and production 3 percent per year."

Production expenditures of approximately $2.4 billion include:

  • Bakken Shale development in North Dakota, where Hess plans to increase rig count to eight by year-end 2010 from three currently and expand production facilities, including the Tioga gas plant
  • Drilling production wells at Okume Complex (Hess 85% working interest - operator) in the Rio Mumi Basin of Equatorial Guinea
  • Drilling production wells at Shenzi (Hess 28%) in the deepwater Gulf of Mexico, Beryl (Hess 22%) in the United Kingdom and Valhall (Hess 28%) in Norway

Field development expenditures of $600 million include:

  • Valhall, where field redevelopment is underway
  • Ujung Pangkah (Hess 75% - operator) in Indonesia, where development of the oil rim is ongoing
  • Pony (Hess 100% - operator) in the deepwater Gulf of Mexico, where engineering and design work for field development is progressing

Exploration expenditures are budgeted at $850 million, including:

  • Five exploration wells on Permit WA-390-P (Hess 100% - operator) and eight wells on Permit WA-404-P (Hess 50%) in the Northwest Shelf of Australia
  • One exploration well on BM-S-22 (Hess 40%) in the Santos Basin of Brazil
  • Exploration activities in the deepwater Gulf of Mexico, Ghana and Indonesia