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Hess Corporation Announces 2014 Capital And Exploratory Budget

Unconventionals - $2.85 billion:

  • $2.2 billion for the development of the Bakken Shale in North Dakota. Hess plans to operate 17 rigs and plans to bring 225 new operated wells online. Hess plans to invest $350 million on major infrastructure projects including the completion of the expansion of the Tioga Gas Plant and associated pipeline and compression projects.
  • $550 million for drilling approximately 35 wells primarily in the wet gas window of the Utica Shale play in Ohio.

Production - $1.475 billion:
  • $350 million to drill five production wells at the Okume Complex and 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 million to drill three production wells and install gas lift on four flank wells at the Valhall Field (Hess 64 percent) in Norway.
  • $300 million to drill ten production wells, install two new wellhead platforms, and progress the Booster Compression Project at Block A-18 (Hess 50 percent) in the Joint Development Area in the Gulf of Thailand.
  • $200 million to drill three production wells and one water injection well at the South Arne Field (Hess 62 percent – operator) in Denmark.
  • $150 million to drill two production wells and one water injection well at the Shenzi Field (Hess 28 percent) in the deepwater Gulf of Mexico.

Developments - $925 million:
  • $400 million for 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 million to progress the full field development of the North Malay Basin project (Hess 50 percent – operator) in Malaysia.

Exploration - $550 million:
  • 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 Ghana.
  • Complete drilling two wells at the Dinarta and Shakrok Blocks (Hess 80 percent – operator) in Iraqi Kurdistan.
  • Conduct 3-D seismic and technical studies in the deepwater Gulf of Mexico in preparation for resuming drilling in 2015.

2014 Estimated Capital and Exploratory Expenditures *

($ Millions)
By Segment:                     By Region:      
Exploration and Production Exploration and Production
Unconventionals $2,850 United States $3,700
Production 1,475 Europe 525
Developments 925 Africa 650
Exploration 550 Asia and Other 925
Total $5,800 $5,800

*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.

Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at

Cautionary Statements

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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