Hess tightens budget belt

Prime target: the Bakken play for Hess

AFP/Scanpix

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Steve Marshall

 09 January 2013 15:04 GMT

US independent Hess intends to cut overall expenditure by 18% this year while maintaining a strong investment focus on unconventional shale plays.

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

Some $2.7 billion, or around 40%, 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% to $400 million.

Hess said forecast expenditure of around $2.2 billion in the Bakken was down from $3.1 billion last year…

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