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NEW YORK--(BUSINESS WIRE)--Nov. 13, 2006--Hess Corporation (NYSE:HES), with partners BHP Billiton and Repsol YPF, announced today the purchase of the Genghis Khan oil and gas development in the deepwater Gulf of Mexico from Anadarko Petroleum Corporation for $1.35 billion. Hess' net investment for its 28 percent interest in the acquisition will be $378 million.
Genghis Khan, located in Green Canyon blocks 652 and 608, is part of the same geologic structure as the recently sanctioned Shenzi project and includes estimated gross hydrocarbon reserves in the range of 65 million to 170 million barrels of oil equivalent. The field has two wells and development infrastructure in place. First oil is expected in mid-2007.
Ownership in Genghis Khan will be the same as the Shenzi development, with BHP Billiton holding a 44 percent interest as operator and Repsol YPF and Hess each holding a 28 percent interest. The sale will close following due diligence, resolution of production handling agreements and other conditions, as well as necessary government approvals.
Hess Corporation, with headquarters in New York, is a global integrated energy company engaged in the exploration for and the development, production, purchase, transportation and sale of crude oil and natural gas. The Corporation also manufactures, purchases, trades and markets refined petroleum and other energy products.
CONTACT: Hess Corporation
Investor: Jay Wilson, 212/536-8940
Media: James Allen, 212/536-8550
SOURCE: HESS CORPORATION