Amerada Hess Corporation has announced a $4 billion capital and exploratory expenditure program for 2006, which includes $413 million for the acquisition of Egyptian assets from Apache Corporation and $366 million for the re-entry to the Waha concessions in Libya.
"We are pleased to have such excellent investment opportunities to sustain profitable growth for our company," said Chairman and CEO John Hess.
Excluding acquisitions, $3.1 billion is targeted for Exploration and Production and about $125 million is for Marketing and Refining. "Our exploration and production program in 2006 results largely from planned investments in world-class field developments such as Okume, JDA Phase II, Pangkah, and Shenzi, and growth opportunities in new country entries, including Egypt, Libya, and Russia. Additionally, higher industry-wide costs for services and materials contribute to the increase in expenditures," said Hess.
Exploration and Production
John O'Connor, Amerada Hess' President of Worldwide Exploration and Production, said, "Our robust portfolio of value creating development projects has generated a broad array of investment opportunities for our company. They have been prioritized and resourced in a disciplined manner to maximize our economic returns while continuing on our growth trajectory. In addition, our strong exploration prospect inventory will help underpin the company's profitable long-term reserve and production growth."
The 2006 program includes $1.4 billion for field developments.
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