Hess 2014 Annual Report Download - page 22

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Norway: The Corporation’s Norwegian production was from its non-operated interests in the Valhall (Hess 64%) and
Hod fields (Hess 63%).
In the first quarter of 2013, BP, the operator of the Valhall Field completed the installation of a new production, utilities
and accommodation platform that extends the field life by approximately 40 years. A multi-year drilling program is
continuing and net production is forecast to be in the range of 30,000 boepd to 35,000 boepd in 2015. In addition, the
operator is executing a multi-year well abandonment program.
Denmark: Production comes from the Corporation's operated interest in the South Arne Field (Hess 62%), offshore
Denmark. Development drilling commenced in 2013 and is planned to continue through 2015. During 2013, the
Corporation completed its phase three development program in which two new wellhead platforms were successfully
installed in the field.
Africa
At December 31, 2014, 15% of the Corporation’s total proved reserves were located in Africa (Equatorial Guinea 3.5%,
Libya 11% and Algeria 0.5%). During 2014, 22% of the Corporation’s crude oil and natural gas liquids production were
from its African operations.
Equatorial Guinea: The Corporation is operator and owns an interest in Block G (Hess 85% paying interest) which
contains the Ceiba Field and the Okume Complex. The national oil company of Equatorial Guinea holds a 5% carried
interest in Block G. At the Okume Complex, an infill drilling campaign commenced in the fourth quarter of 2013 based on
4D seismic and will continue into the first half of 2015.
Libya: The Corporation, in conjunction with its Oasis Group partners, has production operations in the Waha concessions
in Libya (Hess 8%) which contain the Defa, Faregh, Gialo, North Gialo, Belhedan and other fields. Due to the civil unrest in
Libya, production was shut-in beginning in the third quarter of 2013 and restarted, on a significantly reduced rate, in the third
quarter of 2014. Net production at the Waha fields averaged 4,000 boepd in 2014, 15,000 boepd during 2013 and
21,000 boepd in 2012. In December 2014 the Libyan National Oil Company declared force majeure with respect to the
Waha fields and production is currently shut-in. In addition, the Corporation expensed two previously capitalized exploration
wells on offshore exploration Area 54 in the Mediterranean Sea in the fourth quarter of 2013 due to the ongoing civil and
political unrest. The Libyan operations have assets with a book value of $365 million at December 31, 2014.
Algeria: The Corporation has a 49% interest in a venture with the Algerian national oil company that redeveloped
three oil fields. In 2013, the Corporation sold its interest in the development project, Bir El Msana (Hess 45%).
Ghana: The Corporation holds a 44% paying interest and is operator of the Deepwater Tano Cape Three Points license
while the Ghana National Petroleum Corporation holds an 11% paying interest and a 10% carried interest in the block. These
ownership percentages are based on terms of a farmout agreement with a third party that is subject to approval by the
Ghanaian government. The Corporation has drilled seven successful exploration wells on the block since 2011. In
June 2013, the Corporation submitted appraisal plans for each of the seven discoveries, which comprise both oil and natural
gas condensates, to the Ghanaian government for approval. Approval has been received on four appraisal plans and
discussions continue with the Ghanaian government to receive approval on the remaining three appraisal plans. In 2014, the
Corporation drilled three successful appraisal wells. In 2015 the Corporation and its partners will continue to analyze data
from both appraisal drilling and 3D seismic with an expected project sanction decision in 2016. See Capitalized Exploratory
Well Costs in Note 6 – Property, Plant and Equipment in Notes to Consolidated Financial Statements.
Asia and Other
At December 31, 2014, 11% of the Corporation’s total proved reserves were located in the Asia region (JDA 7% and
Malaysia 4%). During 2014, 1% of the Corporation’s crude oil and natural gas liquids production and 61% of its natural gas
production were from its Asian and Other operations. The Corporation completed the sale of its interests in Thailand in April
2014. In addition, the Corporation sold its Pangkah asset and its interest in the Natuna A Field, both offshore Indonesia, in
January 2014 and December 2013, respectively. In the first quarter of 2013, the Corporation sold its interests in Azerbaijan
in the Caspian Sea.
Joint Development Area of Malaysia/Thailand (JDA): The Corporation owns an interest in Block A-18 of the JDA
(Hess 50%) in the Gulf of Thailand. In 2014, the operator continued development drilling and successfully installed a new