Hess 2007 Annual Report Download - page 8

In Indonesia, the second phase of development of the
company-operated Ujung Pangkah Field continued on
schedule. Completion of the onshore oil processing facilities
is expected by year end 2008 and LPG facilities completion
is anticipated by mid-year 2009. Engineering and construction
for the offshore facilities will also continue in 2008 including
the drilling and completion of seven oil wells.
In 2007, we achieved the set milestones for the Phase 2
development of Block A-18 (Hess 50%) in the Malaysia/
Thailand Joint Development Area (JDA) in the Gulf of Thailand.
Offshore facilities were expanded, new wellhead platforms
were installed and Phase 2 development drilling commenced.
EXPLORATION
2007 was a significant year for new acreage capture,
appraisal activity and exploration drilling, as the company
continued to build for the future and grow its portfolio.
Hess captured two highly prospective blocks on the
Australian Northwest Shelf, licenses WA-390-P (Hess
100%) and nearby WA-404-P (Hess 50%) in partnership
with Woodside, bringing our total gross acreage position
in Australia to approximately 1.5 million acres. Exploration
drilling will commence on WA-390-P in the second quarter
of 2008. In Colombia, Hess won two offshore blocks, RC6 &
RC7, totaling nearly 1.3 million gross acres with a 30 percent
working interest. Hess also won three deepwater blocks in
the Gulf of Mexico, ending the year with 371 blocks held.
Appraisal drilling in the Gulf of Mexico and the Malaysia/
Thailand JDA areas were major activities for Hess in 2007.
In the first quarter, a sidetrack well from the original Pony
discovery (Hess 100%) was successfully completed.Results
from a second appraisal well, located 1.5 miles northwest
of the original discovery well in Green Canyon Block 468
also are expected in 2008. We successfully appraised
the Tubular Bells discovery (Hess 20%) in Mississippi
Canyon Block 682 by drilling a sidetrack well in the
first quarter. This sidetrack was followed with a further
appraisal well, which spudded in October 2007.
Technology application was a focus of exploration in 2007.
Hess secured wide-azimuth and multi-azimuth seismic
surveys in the Gulf of Mexico and within its offshore
Mediterranean Egyptian acreage. Hess also committed to
the application of an electro-magnetic survey offshore Ghana.
Successful exploitation drilling in the United States,
United Kingdom, Russia, Libya, Indonesia, the JDA,
Thailand and the Bakken Shale play in North Dakota
will assist in positioning us for growth in the near term.
In 2008, our high impact exploration program has a
distinctly global footprint and is world class. The program
includes drilling deepwater prospects in the Gulf of Mexico,
Australia, Libya, Brazil, Ghana, Ireland and West of Shetlands
in the United Kingdom.
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