Hess Corporation (New York Stock Exchange)

Hess Corporation (Hess), incorporated in 1920, is a global integrated energy company that operates in two segments: Exploration and Production (E&P) and Marketing and Refining (M&R). The E&P segment explores for, develops, produces, purchases, transports and sells crude oil and natural gas. These exploration and production activities take place principally in Algeria, Australia, Azerbaijan, Brazil, Denmark, Egypt, Equatorial Guinea, Gabon, Ghana, Indonesia, Libya, Malaysia, Norway, Russia, Thailand, the United Kingdom and the United States. The M&R segment manufactures, purchases, transports, trades and markets refined petroleum products, natural gas and electricity. As of December 31, 2008, the Company owned a 50% interest in a refinery joint venture in the United States Virgin Islands, and another refining facility, terminals and retail gasoline stations located on the East Coast of the United States.

Exploration and Production

At December 31, 2008, 19% of the Company’s total proved reserves were located in the United States. During the year ended December 31, 2008, 16% of the Company’s crude oil and natural gas liquids production and 11% of its natural gas production were from United States operations. The Company’s production in the United States was principally from properties offshore in the Gulf of Mexico, which include the Llano (Hess 50%), Conger (Hess 38%), Baldpate (Hess 50%), Hack Wilson (Hess 25%) and Penn State (Hess 50%) fields, as well as onshore properties in North Dakota and in the Permian Basin of Texas. At December 31, 2008, Hess had interests in more than 400 exploration blocks in the Gulf of Mexico, which included 1,442,020 net undeveloped acres.

At December 31, 2008, 31% of the Company’s total proved reserves were located in Europe (United Kingdom 9%, Norway 13%, Denmark 3% and Russia 6%). During 2008, 33% of the Company’s crude oil and natural gas liquids production and 37% of its natural gas production were from European operations. Production of crude oil and natural gas liquids from the United Kingdom North Sea was principally from the Company’s non-operated interests in the Nevis (Hess 39%), Schiehallion (Hess 16%), Clair (Hess 9%), Bittern (Hess 28%) and Beryl (Hess 22%) fields. Natural gas production from the United Kingdom in 2008, was primarily from Atlantic (Hess 25%) and Cromarty (Hess 90%), Easington Catchment Area (Hess 32%), Bacton area (Hess 23%), Beryl (Hess 22%), Everest (Hess 19%), Lomond (Hess 17%) and Nevis (Hess 39%) fields.

Substantially all of the 2008 Norwegian production was from the Company’s interest in the Valhall Field (Hess 28%). It also holds an interest in the Snohvit Field (Hess 3%) located offshore Norway. Crude oil and natural gas production comes from the Company’s interest in the South Arne Field (Hess 58%). The Company’s activities in Russia are conducted through its 80%-owned interest in a corporate joint venture operating in the Volga-Urals region of Russia.

At December 31, 2008, 23% of the Company’s total proved reserves were located in Africa (Equatorial Guinea 8%, Algeria 4%, Libya 10% and Gabon 1%). During 2008, 46% of its crude oil and natural gas liquids production was from African operations. The Company is the operator and owns an interest in Block G (Hess 85%), which contains the Ceiba Field and Okume Complex. It has a 49% interest in a venture with the Algerian national oil company that is redeveloping three oil fields. The Company, in conjunction with its Oasis Group partners, has oil and gas production operations in the Waha concessions in Libya (Hess 8%). It also owns a 100% interest in offshore exploration Area 54. The Company’s activities in Gabon are conducted through its Gabonese subsidiary, where it has interests in the Rabi Kounga, Toucan and Atora fields. In 2008, the Company acquired the remaining 22.5% interest in the Gabonese subsidiary. Hess has a 25-year development lease for the West Med Block 1 concession (West Med Block) (Hess 55%), which contains four existing natural gas discoveries and additional exploration opportunities. The Company holds a 100% interest in the Cape Three Points South Block (Hess 100%) located offshore Ghana.

At December 31, 2008, 27% of the Company’s total proved reserves were located in the Asia and other region (Joint Development Area of Malaysia and Thailand (JDA) 13%, Indonesia 9%, Thailand 3% and Azerbaijan 2%). During 2008, 5% of its crude oil and natural gas liquids production, and 52% of its natural gas production were from Asia and other operations. The Company owns an interest in Block A-18 of the JDA (Hess 50%) in the Gulf of Thailand. The Company’s natural gas production in Indonesia primarily comes from its interests offshore in the Ujung Pangkah project (Hess 75%) and the Natuna A Field (Hess 23%). It also owns an interest in the onshore Jambi Merang natural gas project (Hess 25%). In 2008, the Company acquired a 100% working interest in the offshore Semai V exploration block.

The Company’s natural gas production in Thailand primarily comes from the offshore Pailin Field (Hess 15%) and the onshore Sinphuhorm Block (Hess 35%). It also has an interest in the Azeri-Chirag-Gunashli (ACG) fields (Hess 3%) in the Caspian Sea. The Company also holds an interest in the Baku-Tbilisi-Ceyhan (BTC) Pipeline (Hess 2%). It holds a 100% interest in an exploration license covering 780,000 acres in the Carnarvon basin offshore Western Australia (WA-Block 390-P). During 2008, the Company completed drilling its initial four exploration wells of a 16 well commitment on the block. Three of the four wells discovered natural gas. The Company also holds a 50% interest in WA-Block 404-P located offshore Western Australia, which covers a total area of 680,000 acres. The Company has interests in two blocks located offshore Brazil, the BM-S-22 Block (Hess 40%) in the Santos Basin and the BM-ES-30 Block (Hess 60%) in the Espirito Santo Basin.

Marketing and Refining

Hess owns a 50% interest in HOVENSA L.L.C. (HOVENSA), a refining joint venture in the United States Virgin Islands with a subsidiary of Petroleos de Venezuela S.A. (PDVSA). In addition, it owns and operates a refining facility in Port Reading, New Jersey. As of December 31, 2008, refining operations at HOVENSA consisted of crude units, a fluid catalytic cracking unit and a delayed coker unit. HOVENSA has a long-term supply contract with PDVSA to purchase 115,000 barrels per day of Venezuelan Merey heavy crude oil. PDVSA also supplies 155,000 barrels per day of Venezuelan Mesa medium gravity crude oil to HOVENSA under a long-term crude oil supply contract. The remaining crude oil requirements are purchased mainly under contracts of one year or less from third parties and through spot purchases on the open market. After sales of refined products by HOVENSA to unrelated third parties, the Company purchases 50% of HOVENSA’s remaining production.

Hess owns and operates a fluid catalytic cracking facility in Port Reading, New Jersey, with a capacity of 70,000 barrels per day. This facility processes residual fuel oil and vacuum gas oil and operated at a rate of approximately 64,000 barrels per day in 2008. Substantially all of Port Reading’s production is gasoline and heating oil. The Company markets refined petroleum products on the East Coast of the United States to the motoring public, wholesale distributors, industrial and commercial users, other petroleum companies, governmental agencies and public utilities. Hess had 1,366 HESS gasoline stations at December 31, 2008, including stations owned by the WilcoHess joint venture (Hess 44%). Approximately 90% of the gasoline stations are operated by the Company or WilcoHess. Of the operated stations, 93% have convenience stores on the sites. Most of the Company’s gasoline stations are in New York, New Jersey, Pennsylvania, Florida, Massachusetts, North Carolina and South Carolina.

The Company’s refined product sales averaged 472,000 barrels per day in 2008. Total energy marketing natural gas sales volumes, including utility and spot sales, were approximately 2 million thousand cubic feet (mcf) per day in 2008. In addition, energy marketing sold electricity volumes at the rate of 3,200 megawatts (round the clock) in 2008. Hess has 21 terminals with an aggregate storage capacity of 22 million barrels in its East Coast marketing areas. It also owns a terminal in St. Lucia with a storage capacity of 10 million barrels, which is used for third-party storage. The Company has a 50% voting interest in a consolidated partnership that trades energy commodities and derivatives. The Company has a 92.5% interest in Hess LNG, which is pursuing investments in liquefied natural gas (LNG) terminals and related supply, trading and marketing opportunities. The joint venture is pursuing the development of LNG terminal projects located in Fall River, Massachusetts and Shannon, Ireland.

My blog find on following phrases:

• Harriet Metz Noble
• nyse ticker change history
• FACEBOOKS CODE ON THE STOCK EXCHANGE
• traders movies
• square root theory stock market
• how to become more ambitious

Similar articles:

• Domtar Corporation (New York Stock Exchange)
• NFX : Newfield Exploration
• ABK : Ambac Financial Group
• Trading ideas for December, 10st
• Trading ideas for December, 9st

nyse    Companies     aggregate, aggregation, baldpate, conger, crude oil, energy company, equatorial guinea, exploration and production, exploration blocks, gasoline stations, gulf of mexico, hack wilson, HES, hess, Hess Corporation, integrated energy, natural gas liquids, onshore properties, permian basin, petroleum products, retail gasoline, undeveloped acres, united states virgin islands, year ended december

If you enjoyed this article please consider sharing it!