Spinning the bit: Hess
Hess slashes its 2009 budget
US independent Hess has set itself a budget of $3.2 billion for next year - down substantially from the $4.4 billion it budgeted for this year - saying its priority was to protect the company's financial strength.
Hess has earmarked $3.1 billion for exploration and production, with $1.4 billion to be spent on production, $900 million for development and $800 million on exploration.
Company boss John Hess said: “The uncertain economic environment has prompted us to size our 2009 capital and exploratory programme in a way that maintains our financial strength and protects our growth options.”
Hess' production spend will be divided among a number of projects, including the Shenzi field in the deep-water Gulf of Mexico, which is due to come on stream early next year.
Hess will also push ahead at the Okume complex, off Equatorial Guinea.
The company's field development expenditures is expected to include costs related to teh Valhall redevelopment, off Norway, work on the Pony field in the Gulf of Mexico and development at the Ujung Pangkah field, in Indonesia.
Hess is planning to spin the bit in a number of plays next year, with exploration wells on the Azulao and Guarani prospects in BM-S-22 in Brazil's Santos basin and a well on the Lencois prospect in BM-ES-30 in the Espirito Santo basin on the cards.
The company has also scheduled five exploration wells on Permit WA-390-P and three wells on Permit WA-404-P, in Australia's North-West Shelf play.