Hess cuts budget, plans $550m for Ghana, Iraq oil works in 2013

oilUS-based Hess January 9, 2012 cut down its 2013 budget 18% as the company plans spending $6.8 billion on its operations worldwide for the year.

Hess’ capital and exploratory budget for 2012 was $8.3 billion.

The company has prepared to use $550 million of the 2013 budget for “further exploration activities on the Deepwater Tano/Cape Three Points Block in Ghana. Hess, the operator, has 90% share in the Ghana block.

It indicated that part of the $550 million will also be used to complete seismic and drilling two wells at the Dinarta and Shakrok Blocks in Iraqi Kurdistan.

Of the $6.7 billion budgeted, $2.7 billion (40%) was allocated to unconventional shale resources and the remainder is focused on conventional resources, with $1.85 billion (28%) for production, $1.6 billion (24%) for developments and $550 million (8%) for exploration.

It also earmarked $100 million for marketing and refining and corporate expenses.

By regions, Hess allocated $3.6 billion for the United States, $1 billion for Europe, $700 million for Africa while Asia and others had $1.4 billion.

Hess’ CEO and Chairman John Hess in a statement said the company’s capital and exploratory budget for 2013 is “focused on attractive investment opportunities and consistent with our plan, announced in July 2012, to significantly reduce overall expenditures in 2013.”

By Ekow Quandzie

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