Hess Corp. Announces $3.6B 2007 Budget

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Hess Corp. Announces $3.6B 2007 Budget

NEW YORK -- Hess Corp., operator of 1,400 retail locations in the U.S., finalized a $3.6 billion capital and exploratory budget for 2007. Of the total, $3.5 billion will go towards exploration and production. The remaining $75 million will fund marketing and refining projects.

"Our 2007 Capital and Exploratory Budget focuses on attractive investment opportunities in support of our strategy to sustain profitable growth for our shareholders. This program reflects capital discipline and our commitment to maintaining a strong financial position," said John B. Hess, chairman and CEO.

The $75 million that will fund the company's marketing and refining projects will go towards the expansion of the company's retail network and the addition of convenience stores to existing retail locations, the company stated.

The $3.5 billion set aside for exploration and production will allocate $1.4 billion for field development, $1.2 billion for production projects and $900 million for exploration activities. Included in the exploration funds will be $550 million for drilling, including appraisals of two oil discoveries in the deepwater region of the Gulf of Mexico.

Excluded from the 2007 program was the recently announced $378 million acquisition of an interest in the Genghis Khan Field in the deepwater region of the Gulf of Mexico, which will close in the next 30 days, the company stated.