Hess 2008 Annual Report Download - page 7

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Malaysia/Thailand Joint Development Area
5
November, subsequent to the commissioning of a
42 inch export pipeline to Thailand. Net natural gas
sales from Block A-18 reached 284 million cubic feet
per day in December.
In Indonesia, natural gas production from
the company-operated Ujung Pangkah Field
(Hess 75%) was supplemented by crude oil and
condensate production from horizontal wells and
the construction of oil treatment facilities and a
tank farm. Net production rose to 12,000 barrels
of oil equivalent per day at year end.
In the United States, we continued to build our
position in the North Dakota Bakken shale play.
In 2008 we increased our land holdings to 570,000
acres and drilled 60 wells, raising our net production
from the Bakken to more than 8,000 barrels of oil
equivalent per day at year end.
DEVELOPMENT In the deepwater Gulf of
Mexico, we continued to
make significant progress in the Shenzi oil
and gas development (Hess 28%). All major
instal lations (tension leg platform tendons, hull
and topsides) have been completed and flowlines
have been laid and tested. Pre-startup production
wells have been drilled and we expect first oil to
commence in the second quarter of 2009. At the
Pony project (Hess 100%) in the Gulf of Mexico,
we successfully completed an appraisal well and
began front-end engineering and design of the
hull and topsides.