Home   >   Business   >   Business News   >   201301
US Firm Pumps $6.8bn Into Oil Industry   
 
  << Prev  |  Next >>
 
15-Jan-2013  
Comments ( 0 )     Email    Print
       
 
 
 
 
 
Related Stories
 
US independent Hess is targeting more exploration work on the Deepwater Tano/Cape Three Points block off Ghana, which it operates with a 90% stake, despite a planned cut in overall budget this year.

The company plans to cut overall expenditure by 18 percent this year while maintaining a strong investment focus on unconventional shale plays.

In December, 2012, Hess announced that its Pecan-1 exploration well located in the Deepwater Tano/Cape Three Points block offshore Ghana, had encountered oil pay.

The company had earlier completed drilling operations on the Ankobra-1 well, on the same license block but no commercially significant hydrocarbons were hit upon.

Hess subsequently acquired 1,006 sq km of new 3D seismic in anticipation of the drilling of the Pecan-1well, which turned out to be successful.

The company, under its 2013 capital budget unveiled last week, plans to pump $6.8 billion into exploration, production and development as well as marketing and refining, down from $8.3 billion last year.

Some $2.7 billion, or around 40 percent, is to be allocated to development of shale resources in the US including exploitation of the Bakken play in North Dakota, where it eyes a rig count of 14, and appraisal work in the Utica shale of Ohio, where spending will increase 33 percent to $400 million.

Hess said forecast expenditure of around $2.2 billion in the Bakken was down from $3.1 billion last year due to lower well costs as a result of more cost-efficient pad-based drilling methods.

The company has earmarked $550 million for conventional exploration spending that will include shooting seismic and drilling exploration wells on the Dinarta and Shakrok blocks in Iraqi Kurdistan, where it holds 80% stakes as operator.

Hess has also allocated $1.6 billion for development projects, including Tubular Bells in the deep-water Gulf of Mexico and the North Malay Basin project in Malaysia.
 
 
Source: Economic Tribune
 
 

Comments ( 0 ): Post Your Comments >>

 
 
 
Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority.