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90 90
Reserves Audit
The Corporation engaged the consulting firm of DeGolyer and MacNaughton (D&M) to perform an audit of the internally prepared
reserve estimates on certain fields aggregating 80% of 2014 year-end reported reserve quantities on a barrel of oil equivalent basis
(82% in 2013). The purpose of this audit was to provide additional assurance on the reasonableness of internally prepared reserve
estimates and compliance with SEC regulations. The D&M letter report, dated February 4, 2015, on the Corporation’s estimated oil
and gas reserves was prepared using standard geological and engineering methods generally recognized in the petroleum industry.
D&M is an independent petroleum engineering consulting firm that has been providing petroleum consulting services throughout the
world for over 70 years. D&M’s letter report on the Corporation’s December 31, 2014 oil and gas reserves is included as an exhibit to
this Form 10-K. While the D&M report should be read in its entirety, the report concludes that for the properties reviewed by D&M,
the total net proved reserve estimates prepared by Hess and audited by D&M, in the aggregate, differed by less than 1% of total
audited net proved reserves on a barrel of oil equivalent basis. The report also includes among other information, the qualifications of
the technical person primarily responsible for overseeing the reserve audit.
Following are the Corporation’s proved reserves:
Crude Oil, Condensate & Natural Gas Liquids Natural Gas
United
States
Europe
(g) Africa Asia Total
United
States
Europe
(g)
Asia
and
Africa
(h) Total
(Millions of barrels) (Millions of mcf)
Net Proved Developed and
Undeveloped Reserves
At January 1, 2012 ........................ 373 494 250 52 1,169(b) 360 563 1,500 2,423
Revisions of previous estimates (a) 32 (16) (5) 1 12 10 4 42 56
Extensions, discoveries and other
additions ................................... 108 18 17 1 144 76 1 171 248
Improved recovery ........................ 7
—
—
—
7 4
—
—
4
Sales of minerals in place .............. (2 ) (49)
—
—
(51)
—
(192 )
—
(192)
Production (f) ................................ (45 ) (31) (28) (6) (110) (50) (19 ) (175) (244)
At December 31, 2012 .................. 473 416 234 48 1,171(b) 400 357 1,538 2,295
Revisions of previous estimates (a) (55 ) (24)
—
—
(79) (12) (66 ) (5) (83)
Extensions, discoveries and other
additions ................................... 211 4 2
—
217 131 4 7 142
Sales of minerals in place .............. (2 ) (89) (4) (18) (113) (4) (47 ) (108) (159)
Production (f) ................................ (45 ) (16) (22) (5) (88) (51) (10 ) (159) (220)
At December 31, 2013 .................. 582 291 210 25 1,108 464 238 1,273 1,975
Revisions of previous estimates (a) (34 ) (20) (8) 1 (61) 58 (31 ) 23 50
Extensions, discoveries and other
additions ................................... 137 34 6 1 178 184 26 192 402
Sales of minerals in place ..............
—
—
—
(19) (19) (20)
—
(329) (349)
Production (f) ................................ (54 ) (14) (20) (1) (89) (66) (13 ) (118) (197)
At December 31, 2014 .................. 631 291 188 7 1,117 620(c) 220 1,041 1,881
Net Proved Developed Reserves (d)
At January 1, 2012 ........................ 190 212 194 25 621 199 273 740 1,212
At December 31, 2012 .................. 280 181 188 27 676 232 190 798 1,220
At December 31, 2013 .................. 278 126 185 17 606 279 104 727 1,110
At December 31, 2014 .................. 320 123 163 3 609 350 96 473 919
Net Proved Undeveloped
Reserves (e)
At January 1, 2012 ........................ 183 282 56 27 548 161 290 760 1,211
At December 31, 2012 .................. 193 235 46 21 495 168 167 740 1,075
At December 31, 2013 .................. 304 165 25 8 502 185 134 546 865
At December 31, 2014 .................. 311 168 25 4 508 270 124 568 962
(a) Includes the impact of changes in selling prices on the reserve estimates for production sharing contracts with cost recovery provisions. Revisions included an
increase to crude oil, condensate and natural gas liquids reserves of 1 million barrels and 0.1 million barrels in 2014 and 2013, respectively and a decrease of
2 million barrels in 2012. Revisions also included an increase to natural gas reserves of 7 million mcf in 2014 and reductions to natural gas reserves of 9 million
mcf and 2 million mcf in 2013 and 2012, respectively, due to changes in selling prices.
(b) Includes 8 million barrels as of December 31, 2012 and 10 million barrels as of January 1, 2012 of crude oil reserves related to a noncontrolling interest. The joint
venture including the noncontrolling interest was sold in April 2013.
(c) Excludes approximately 235 million mcf of carbon dioxide gas for sale or use in company operations.