“In 2014, our budget includes development of the Tubular Bells Field in the deepwater Gulf of
Mexico and the North Malay Basin Projectin Malaysia, and ongoing drilling at the Valhall Field in Norway, the South Arne Field in Denmark, Block G in Equatorial Guinea, Block A-18 in the Joint Development Area in the Gulf of Thailand and the Shenzi Field in the deepwater Gulf of Mexico. Our exploration program includes wells in Ghana and Kurdistan.”
$2.85 billion: $2.2 billionfor the development of the Bakken Shalein North Dakota. Hess plans to operate 17 rigs and plans to bring 225 new operated wells online. Hess plans to invest $350 millionon major infrastructure projects including the completion of the expansion of the Tioga Gas Plant and associated pipeline and compression projects. $550 millionfor drilling approximately 35 wells primarily in the wet gas window of the Utica Shaleplay in Ohio.
$1.475 billion: $350 millionto drill five production wells at the Okume Complexand progress facility work at the Sendje Ceiba floating production, storage and offloading vessel (FPSO) at Block G (Hess 85 percent – operator) in Equatorial Guinea. $300 millionto drill three production wells and install gas lift on four flank wells at the Valhall Field (Hess 64 percent) in Norway. $300 millionto drill ten production wells, install two new wellhead platforms, and progress the Booster Compression Projectat Block A-18 (Hess 50 percent) in the Joint Development Area in the Gulf of Thailand. $200 millionto drill three production wells and one water injection well at the South Arne Field (Hess 62 percent – operator) in Denmark. $150 millionto drill two production wells and one water injection well at the Shenzi Field (Hess 28 percent) in the deepwater Gulf of Mexico.
$925 million: $400 millionfor the development and start-up of the Tubular Bells Field in the deepwater Gulf of Mexico(Hess 57 percent – operator). Hess will install the hull, topsides and subsea equipment, complete two production wells and drill a fourth production well. $400 millionto progress the full field development of the North Malay Basin project (Hess 50 percent – operator) in Malaysia.
- Hess plans to drill three appraisal wells and perform one drill stem test on the Deepwater Tano / Cape Three Points Block (Hess 90 percent – operator) in
- Complete drilling two wells at the Dinarta and Shakrok Blocks (Hess 80 percent – operator) in Iraqi
- Conduct 3-D seismic and technical studies in the deepwater Gulf of
Mexicoin preparation for resuming drilling in 2015.
2014 Estimated Capital and Exploratory Expenditures*
|By Segment:||By Region:|
|Exploration and Production||Exploration and Production|
|Exploration||550||Asia and Other||925|
*Note: 2014 Capital and Exploratory expenditures of
$5.8 billion exclude capital spending associated with Retail Marketing and the $290 million acquisition of the 56 percent equity interest in WilcoHess that Hess Corporation does not own. This transaction which was originally expected to close in the fourth quarter of 2013 is now anticipated to close in the first quarter of 2014. As previously announced, Hess Corporation plans to spin or sell its Retail Marketing business with completion expected in mid-2014.
This news release contains projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the company’s current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved, and actual results could differ materially from those projected as a result of certain risk factors. A discussion of these risk factors is included in the company’s periodic reports filed with the
Securities and Exchange Commission.
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