Hess 2002 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2002 Hess annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 62

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62

11
with first production of natural gas anticipated in 2005.
Combined net production from these four fields is expect-
ed to reach about 30,000 barrels of oil equivalent per day
by 2006.
In Indonesia, Amerada Hess is formulating development
plans for the Pangkah Field (AHC 66%). Initial production
from this field is expected in 2005.
Development of the Llano Field (AHC 27.50%) on Garden
Banks Blocks 385 and 386 in the Gulf of Mexico is
proceeding. Production from phase one is expected to
commence in 2004.
The Corporation’s interest in the large natural gas fields in
the Joint Development Area between Malaysia and
Thailand increased to 50% from 25% as a result of the
exchange of the Corporation’s interest in oil fields in
Colombia for the additional interest in the Joint
Development Area. Phase one of the development, which
covers approximately 25% of the estimated resources in
the area, is complete and is awaiting pipeline construction.
Final approval for the pipeline is expected to be received
in the second quarter of 2003.
Exploration
In Equatorial Guinea, Amerada Hess, with an 85% interest,
discovered the Ebano, Abang, Akom and Elon Fields.
The Ebano, Akom and Abang discoveries had between
118 feet and 181 feet of net oil bearing pay. Appraisal
drilling is planned in 2004 for these discoveries. The Elon
Field was appraised in 2002 and will be developed.
Late in 2002, Amerada Hess drilled the G-13 exploration
well on a previously untested fairway offshore Equatorial
Guinea. That well discovered 251 feet of net oil pay. Early
in 2003, an appraisal well was drilled 2.3 miles southeast
of the discovery well. The appraisal well encountered 397
feet of net oil pay. A third well is planned for later this year.
Amerada Hess has an 85% interest in these wells.
In the Gulf of Mexico, a well drilled on the Shenzi prospect
on Green Canyon Block 654 (AHC 28%) made a potentially
significant discovery. The well, in 4,400 feet of water,
encountered a gross hydrocarbon column of 465 feet with
140 feet of net pay. Drilling of an appraisal well is planned
in the second quarter of 2003.
In Brunei, a production sharing agreement with the
Government was recently signed for Block J in the deep
offshore waters of Brunei Darussalam. Amerada Hess has
a 15% interest in the block that covers about 1,900 square
miles in water depths ranging from 2,600 to 6,900 feet.
The 2003 exploration program comprises fewer, but
higher impact wells. Emphasis is on the deep-water Gulf
of Mexico, West Africa and Southeast Asia.
North Dakota, United States Valhall Field, Norway