21 July 2017

Hess Corporation allocates $6.8bn into oil industry


Hess Corporation allocates $6.8bn into oil industry

In 2013 capital budget, Hess Corporation, an American-based integrated oil company based in New York City plans to invest $6.8 billion into exploration, production, development, marketing and refining, which has decreased as compared to $8.3 billion in 2012.

The company has also allocated $1.6 billion for development projects, which includes Tubular Bells in the deep-water Gulf of Mexico and the North Malay Basin project in Malaysia.

The, company has a target of bringing in more exploration work on the Deepwater Tano/Cape Three points block in Ghana, which holds 90% stake as an operator, despite the plans cut in the overall budget in 2013.

Hess had announced in December 2012, that its Pecan-1 exploration well, had encountered oil pay which was located in the Deepwater Tano/Cape Three Points block offshore Ghana. The company had acquired 1,006 sq km of new 3D seismic in an expectation of the drilling of the Pecan-1well, which turned out to be successful.

And in 2013, by focusing on unconventional shale plays, Hess plans to cut overall expenditure by 18 percent.

Previously, drilling operations on the Ankobra-1 well was completed by Hess on the same license block but there were no commercially significant hydrocarbons found.

The company holds 80% stakes as operator with Dinarta and Shakrok blocks in Iraqi Kurdistan, and has kept aside $550 million for conventional exploration spending which includes shooting seismic and drilling exploration wells.

An amount of $2.7 billion, or around 40 percent, will be allocated for the development of shale resources in the US which include exploitation of the Bakken play in North Dakota, where it eyes a rig count of 14, and appraisal work in the Utica shale of Ohio, where spending will increase 33 percent to $400 million.

A forecast expenditure of around $2.2 billion in the Bakken was less as compared to $3.1 billion in 2012 due to lower well costs which resulted because of more cost-efficient pad-based drilling methods..

Source: myjoyonline.com

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