Hess 2008 Annual Report Download - page 25

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Marketing and Refining
Total refined product sales were as follows:
2008* 2007* 2006*
(Thousands of barrels per
day)
Gasoline ................................................... 234 210 218
Distillates .................................................. 143 147 144
Residuals .................................................. 56 62 60
Other ..................................................... 39 32 37
Total .................................................... 472 451 459
* Of total refined products sold in 2008, 2007 and 2006 approximately 50% was obtained from HOVENSA and Port Reading. The Corporation
purchased the balance from third parties under short-term supply contracts and spot purchases.
Refining
The Corporation owns a 50% interest in HOVENSA L.L.C. (HOVENSA), a refining joint venture in the United
States Virgin Islands with a subsidiary of Petroleos de Venezuela S.A. (PDVSA). In addition, it owns and operates a
refining facility in Port Reading, New Jersey.
HOVENSA: Refining operations at HOVENSA consist of crude units, a fluid catalytic cracking unit and a
delayed coker unit.
The following table summarizes capacity and utilization rates for HOVENSA:
Refinery
Capacity 2008 2007 2006
Refinery Utilization
(Thousands of
barrels per day)
Crude..................................... 500 88.2% 90.8% 89.7%
Fluid catalytic cracker ........................ 150 72.7% 87.1% 84.3%
Coker..................................... 58 92.4% 83.4% 84.3%
The delayed coker unit permits HOVENSA to run lower-cost heavy crude oil. HOVENSA has a long-term
supply contract with PDVSA to purchase 115,000 barrels per day of Venezuelan Merey heavy crude oil. PDVSA
also supplies 155,000 barrels per day of Venezuelan Mesa medium gravity crude oil to HOVENSA under a long-
term crude oil supply contract. The remaining crude oil requirements are purchased mainly under contracts of one
year or less from third parties and through spot purchases on the open market. After sales of refined products by
HOVENSA to third parties, the Corporation purchases 50% of HOVENSA’s remaining production at market prices.
Gross crude runs at HOVENSA averaged 441,000 barrels per day in 2008 compared with 454,000 barrels per
day in 2007 and 448,000 barrels per day in 2006. The 2008 utilization rate for the fluid catalytic cracking unit at
HOVENSA reflects lower utilization due to weak refining margins, planned and unplanned maintenance of certain
units, and a refinery wide shut down for Hurricane Omar. During the second quarter of 2007, the coker unit at
HOVENSA was shut down for approximately 30 days for a scheduled turnaround. The fluid catalytic cracking unit
at HOVENSA was shut down for approximately 22 days of unplanned maintenance in 2006.
Port Reading Facility: The Corporation owns and operates a fluid catalytic cracking facility in Port Reading,
New Jersey, with a capacity of 70,000 barrels per day. This facility, which processes residual fuel oil and vacuum
gas oil, operated at a rate of approximately 64,000 barrels per day in 2008 compared with 61,000 barrels per day in
2007 and 63,000 barrels per day in 2006. Substantially all of Port Reading’s production is gasoline and heating oil.
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