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Hess to devote $5.6 billion on capital spending

NEW YORK (AP) — Hess Corp. announced a $5.6 billion capital spending plan Friday, focusing mostly on oil and gas production and exploration.

The New York petroleum company said it would earmark $3.1 billion of that budget toward a variety of projects including:

—A 15-rig shale gas operation in the Bakken region of North Dakota;

—Production and water injection wells at the Valhall offshore field in Norway;

—A minority interest in the Shenzi project in the deep-water Gulf of Mexico;

—Well work-overs and completions in Equatorial Guinea.

Another $1.6 billion would be spent on other areas including the expansion of the Tioga gas plant, construction of an oil storage facility in North Dakota and field redevelopment work at Valhall.

Chairman and CEO John Hess said the company has devoted more than 35 percent of its capital spending to unconventional oil projects like the Bakken shale operation. Hess plans to grow oil reserves and production by at least 3 percent per year.

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