Hess 2002 Annual Report Download - page 12

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10
EXPLORATION
& PRODUCTION
Amerada Hess made several important oil and gas
discoveries in 2002. The Corporation will begin developing
a number of these discoveries and is appraising others.
Production
Production increased in 2002 to 451,000 barrels of oil
equivalent per day from 433,000 barrels per day in 2001.
In 2003, overall production is estimated to drop by about
20% primarily as a result of portfolio reshaping, the Ceiba
production plan and natural declines in mature fields.
In Algeria, the Gassi El Agreb redevelopment project oper-
ated by SonaHess, a joint operating company between
Amerada Hess and Sonatrach, is proceeding well.
Production is expected to increase in 2003 to about
19,000 barrels of oil per day for the Corporation from
15,000 barrels per day in 2002.
Late in 2003, production from the Valhall Field
(AHC 28.09%) in the Norwegian North Sea will begin to
increase as a result of the ongoing enhanced recovery,
waterflood project.
The Ceiba Field, which Amerada Hess operates with an
85% working interest, is responding positively to water
injection. It will be produced at a lower rate and over a
longer period than originally planned. Full field develop-
ment will continue in 2003, with additional water injection
and production wells being drilled.
In Indonesia, Amerada Hess will obtain an interest in
Natuna A by transferring its shares of Premier Oil, a British
oil company, to Premier in exchange for an equity interest
in the block. Upon completion of the transaction, the
Corporation’s net share of production will be about 5,000
barrels of oil equivalent per day.
Development
Late in 2002, Amerada Hess submitted development plans
for the Okume, Oveng and Elon Fields in the Rio Muni
Basin offshore Equatorial Guinea to the Government for
approval. First oil from these fields is targeted for 2005.
In the United Kingdom, the Juno development (AHC 35%)
was brought on stream in late 2002. The Clair develop-
ment (AHC 9.29%) is proceeding, with production start-up
targeted for 2004. The Atlantic (AHC 25%) and Cromarty
(AHC 90%) developments should be sanctioned this year
Llano Field, Gulf of Mexico
Development of
new oil and gas fields
will provide future
growth in value.