Hess Corporation, with headquarters in New York announced today a 2012 capital and exploratory budget of $6.8 billion, nearly all of which is targeted for Exploration and Production: $2.5 billion for unconventionals, $1.6 billion for production, $1.8 billion for developments and $800 million for exploration.
John B. Hess, Chairman and CEO, stated, “We believe that the investments we are making in unconventionals are lower risk and will generate long term profitable growth for shareholders. We expect to fund the majority of our 2012 program from internally generated cash flow and asset sales.”
Greg Hill, President of Worldwide Exploration and Production, said, “Our focus in 2012 will be on execution. We are committed to creating value and delivering sustainable growth in production and reserves from both our unconventional and conventional portfolios.”
Production expenditures of approximately $1.6 billion include:
- Drilling production and water injection wells at Shenzi (Hess 28 percent), and drilling production wells at the Llano Field (Hess 50 percent) in the deepwater Gulf of Mexico
- Drilling production wells on Block G (Hess 85 percent – operator) in Equatorial Guinea
Development expenditures of approximately $1.8 billion include:
- Commencing development drilling at the Tubular Bells Field (Hess 57 percent – operator) in the deepwater Gulf of Mexico
- Completion of field redevelopment and gas lift projects at the Valhall Field (Hess 64 percent) in Norway
- Concluding appraisal activities and progressing front end engineering and design work at WA-390-P (Hess 100 percent – operator) offshore Western Australia
- Progressing development of Block A-18 (Hess 50 percent) in the Joint Development Area (JDA) in the Gulf of Thailand, including wellhead platform installations and ongoing drilling activities
Exploration expenditures of approximately $800 million include:
- Drilling exploration wells in Ghana, Indonesia, Brunei and the deepwater Gulf of Mexico
- Acquiring seismic at the Dinarta and Shakrok Blocks (Hess 80 percent – operator) in Iraqi Kurdistan
- USA: Hess Corporation Announces Capital and Exploratory Budget of $5.6 billion for 2011
- USA: Hess Proceeding with Tubular Bells Field Development
- Norway: Hess Completes Transactions for Valhall and Hod Fields
- USA: Hess’ 4Q 2010 Income Dives
- USA: First MWCC’s Non-Member Receives Drilling Permit
- Hess to spend $2.3 billion to develop Gulf of Mexico oil field (mb50.wordpress.com)
- USA: Alliance Engineering to Design Topsides for Tubular Bells Field Spar Platform (mb50.wordpress.com)
- USA: Chevron to Splash USD 32.7 Billion in 2012 (mb50.wordpress.com)
The campaign will include another first for the Well Enhancer as she will be undertaking her deepest project to date at approximately 1,540 ft (470 m) water depth. The Well Enhancer’s current specification allows her to work in water depths of up to 1,970 ft (600 m).
The Well Enhancer’s arrival represents the emergence of the LWI market for a region which is experiencing rapid development.
The Well Enhancer’s strong track record and Well Ops UK’s reputation as a market leader in providing subsea well intervention services in the North Sea was key in obtaining the award for the African project. This is because Well Ops North Sea clients also own significant interests offshore West Africa and key personnel already understand the methodology and technology behind riserless well intervention operations.
The campaign will include remedial workscopes on six wells by way of a subsea tree replacement, production enhancement, well maintenance and well integrity work.
The Well Enhancer, launched in 2008, provides oil and gas production companies the opportunity to undertake a multitude of workscopes across a number of wells in various locations with the ability to transit between wells and gain access to a well via a Subsea Intervention Lubricator (SIL) well control package to intervene.
This method is both a much quicker and less expensive option to the conventional approach of using a drilling rig. Using LWI vessels also frees up drilling rigs to undertake the operator’s drilling, completion and well work-over projects.
The Well Enhancer, as with sister vessel Seawell, can also provide the operator with up to an 18-man saturation diving system rated for 984 ft (300 m). This offers clients increased options and flexibility when undertaking well work and can support light construction and inspection, repair and maintenance projects within the field, thus maximizing the capabilities of the assets.
Ophir Energy plc (Ophir), an Africa-focused upstream oil and gas company, notes the announcement released on 21 April 2011 by the Ministry of Mines, Industry & Energy of Equatorial Guinea of the approval and signing of a Memorandum of Understanding (MoU) relating to the commercial structure of the LNG Train 2 Integrated Project in Equatorial Guinea.
The MoU relates to the alignment of the gas producers, the owners of the gas pipeline infrastructure and the owners of EGLNG Train 1 to develop and implement the LNG Train 2 Project (EGLNG2). Ophir has an established position offshore Equatorial Guinea with an 80% interest as Operator of Block R which covers 1,600km2 and contains the significant gas discoveries Fortuna and Lykos. In 2009 Ophir acquired 1,000km2 3D seismic survey data of the area and has a high impact drilling campaign in place for 2011.
“MALABO, 21 APRIL 2011 SIGNATURE OF MEMORANDUM OF UNDERSTANDING RELATING TO THE INTEGRATED PROJECT OF LNG TRAIN 2
The Ministry of Mines, Industry & Energy is pleased to announce that a Memorandum of Understanding (MOU) has been approved and signed relating to the commercial structure of the LNG Train 2 Integrated Project in Equatorial Guinea. The MOU was signed by the Ministry of Mines, Industry & Energy, SONAGAS GE (the national gas company of Equatorial Guinea), the partners of Blocks O & I (Noble Energy, GEPetrol GE (the national oil company of Equatorial Guinea), Glencore, Atlas Petroleum and Osbourne Resources Ltd.), the partners of Block R (Ophir Energy and GEPetrol GE), the shareholders of 3G Holding Ltd (Union Fenosa Gas and GALP Energia) and the partners of EGLNG Holding Ltd.
(Marathon GE, Mitsui & Co. Ltd and Marubeni Gas Development Co. Ltd).
The signed MOU relates to the alignment of the gas producers, the owners of the gas pipeline infrastructure and the owners of EGLNG Train 1 to develop and implement the LNG Train 2 Project, using the resources necessary to carry out this Project. The planned FID for this project is 2012 with the first LNG in 2016.”
Ophir Energy plc is a UK incorporated holding company with interests in 17 oil and gas exploration projects in eight different African jurisdictions. The Group’s headquarters are located in London (England), with operational offices in Perth (Australia), Malabo (Equatorial Guinea), Dar es Salaam/Mtwara (Tanzania) and Dakar (Senegal).