Hess to proceed with Tubular Bells GoM development

Hess Corp. has announced plans to proceed to develop the deepwater Gulf of Mexico Tubular Bells oil and gas project, subject to receipt of the necessary government permits.

Offshore staff

NEW YORK – Hess Corp. has announced plans to proceed to develop the deepwater Gulf of Mexico Tubular Bells oil and gas project, subject to receipt of the necessary government permits.

The plan initially calls for three subsea production wells and two water injection wells from two subsea drill centers tied back to a third-party owned spar production facility, the first of its kind to be constructed entirely in the United States. Drilling is scheduled to begin in 2012 and initial production is expected in 2014.

The development is estimated to cost $2.3 billion, with additional commitments for production handling, export pipeline, and oil and gas gathering and processing services.

Annual gross production is expected to peak in the range of 40,000-45,000 boe/d. Total estimated recoverable resources for Tubular Bells are estimated at more than 120 MMboe.

Hess will hold a 57.14% interest in the field and Chevron U.S.A. Inc. will hold the remaining 42.86%.

Tubular Bells was discovered in 2003, along with a number of other deepwater finds.

10/25/2011

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