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
- Hess Market Cap Plunges $1.5B (Dec 24)
- Hammerhead-1 Strikes Offshore Guyana (Aug 30)
- Hess Loss Shrinks As Higher Oil Prices Offset Falling Output (Jul 25)