Hess 2000 Annual Report Download - page 14

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12
ALGERIA
In 2000, Amerada Hess acquired, for $55 million, the Gassi El Agreb redevelopment project in Algeria,
which covers the El Gassi, El Agreb and Zotti Fields. The Corporation expects to invest approximately
$500 million over the next five years to enhance recovery from the fields through an operating company
named SonaHess, which is a joint venture between Amerada Hess and Sonatrach, the Algerian national
oil company. The enhanced recovery project is designed to increase gross production from about 30,000
barrels of oil per day to 50,000 barrels per day late in 2003. Amerada Hess expects to receive net pro-
duction of about 14,000 barrels of oil per day from these fields in 2001 with peak entitlement production
expected to reach about 25,000 barrels of oil per day in 2006.
Amerada Hess also acquired exploration rights on Block 401/c, which is adjacent to the Hassi Berkine
region of Algeria, a prolific oil production area.
GABON
The Atora Field came onstream in February 2001. Amerada Hess Production Gabon, a 77.50% owned
Gabonese subsidiary of the Corporation, has a 40% interest in the field and expects its share of pro-
duction from the Atora Field to reach 6,000 barrels of oil per day in 2001 and to peak at 9,000 barrels
of oil per day in 2002.
Crude oil production for Amerada Hess in Gabon averaged 7,100 barrels per day in 2000 and is expected
to increase to about 9,000 barrels per day in 2001.
AZERBAIJAN
Amerada Hess increased its equity interests in the Azeri, Chirag and Guneshli Fields in Azerbaijan to
2.72% from 1.68% in 2000. Production for Amerada Hess in 2001 is expected to average approximately
5,500 barrels of oil per day. Options for expanding the oil export pipeline system to handle increased
volumes of oil production from Azerbaijan are being considered. The Corporation’s share of production
in Azerbaijan has the potential to rise to in excess of 20,000 barrels of oil per day in 2008, if pipeline
capacity is increased.