Hess 2008 Annual Report Download - page 9

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7
2008 was a very active year for exploration drilling
with successful wells in Australia, Libya and Egypt.
Onshore in the United States, the company
continued to advance the Hess-operated
development of the Residual Oil Zone at
the Seminole-San Andres Unit (Hess 34%)
in West Texas, with the installation of facilities
and equipment in the fourth quarter. Injection of
carbon dioxide into the reservoir will enhance
oil recovery.
In Indonesia, the company sanctioned the Gajah
Baru Development (Hess 23%) in the Natuna
Sea and approved the associated gas sales
agreements. At Ujung Pangkah, the liquefied
petroleum gas facility, which is the final phase
of the onshore project, is expected to commence
operation in the second quarter of 2009.
In the Norwegian North Sea, the Valhall
Redevelopment project (Hess 28%) continued
to make progress with the construction of the
deck, jacket and piles. Installation of the jacket is
anticipated in 2009.
EXPLORATION 2008 was a very active year
for exploration drilling with
successful wells drilled in Australia, Libya and Egypt.
In Australia, the Nimblefoot, Briseis and Glencoe
wells discovered natural gas in approximately 3,500
feet of water on the WA-390-P license, which is
100 percent owned by Hess. In Libya the A1-54/01
well on the Arous Al-Bahar prospect discovered
hydrocarbons in 2,800 feet of water. In Egypt
the Dekhila-1x well in the deepwater West
Mediterranean block also discovered hydrocarbons.
Hess was successful in winning 47 deepwater
blocks in the central and western Gulf of Mexico
lease sales and ended the year with 384 deepwater
Gulf of Mexico blocks. In addition, Hess was
awarded the offshore Semai V License in eastern
Indonesia with a gross acreage size of nearly one
million acres.
Technology application remained a priority in 2008.
During the year wide-azimuth and multi-azimuth
seismic surveys were acquired in the Gulf of Mexico
and Egypt and a new high end seismic processing
contract was executed. Hess also commenced
3D seismic acquisition in the western half of our
deepwater block offshore Ghana.