Hess 2000 Annual Report Download - page 13

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11
BRAZIL
Amerada Hess Limitada, the Corporation’s Brazilian subsidiary, has interests in six blocks in Brazil
comprising 5.1 million gross acres and 1.9 million net acres in water depths ranging from 200 to 9,900
feet. Amerada Hess Limitada drilled its initial exploration wells in Brazil in 2000 on Blocks BC-8 in
the Campos Basin and BS-2 in the Santos Basin, in both of which it has a 32% interest. Both wells
encountered hydrocarbons. A second well on Block BS-2 is scheduled to be drilled in the first half of
2001. Amerada Hess Limitada has a 16% interest in Block BCe-2 in the Potiguar Basin. A well is expected
to be drilled in the first half of 2001. Extensive 3-D seismic covering Block BM-S-3 (AHL 45%) was
acquired during 2000. Interpretation of this data is taking place and an exploration well is planned on
this block in 2002.
In the Brazilian Second Licensing Round, Amerada Hess Limitada acquired an 85% interest in the
BM-Seal-5 Block and a 40% interest in the BM-Seal-4 Block, both of which are located in the Sergipe-
Alagoas Basin. Seismic data is being acquired.
INDONESIA
Early in 2001, agreement was reached for the sale of natural gas from the Jabung Production Sharing
Contract (PSC), in which Amerada Hess holds a 30% interest. Gross production from the Jabung PSC is
expected to average approximately 60,000 Mcf of natural gas per day beginning in the third quarter of
2003 and reach a maximum rate of approximately 130,000 Mcf of natural gas per day late in the decade.
As part of the project, liquefied petroleum gas and condensate are expected to be produced at gross rates
of 15,000 barrels per day and 11,000 barrels per day, respectively. Current gross crude oil production is
21,000 barrels per day. Production for Amerada Hess in Indonesia averaged 4,000 barrels of oil per
day and 10,000 Mcf of natural gas per day in 2000.
THAILAND
Net production for the Corporation from the Pailin Field in Thailand averaged 23,000 Mcf of natural
gas per day and 1,200 barrels of condensate per day in 2000. Phase two of the development of the field
has been approved and is expected to be brought onstream in July 2002. Phase two will provide the Cor-
poration with additional production of 25,000 Mcf of natural gas per day.
MALAYSIA
In 2001, Amerada Hess acquired an 85% interest in the Block F PSC off the northern coast of Sarawak,
which covers approximately 8,000 square kilometers. The Company is processing existing seismic data
and acquiring additional seismic. Early in 2001, exploration drilling began on Blocks SK-306 (AHC 46%)
and PM-304 (AHC 41%) to evaluate the commercial potential of previous crude oil and natural gas dis-
coveries on these blocks.