Hess Corporation (NYSE:HES) announced today that its Australian
subsidiary, Hess Exploration Australia Pty Ltd, has signed a non-binding
Letter of Intent (LOI) with the North West Shelf (NWS). Hess intends to
develop its natural gas discoveries in its deepwater permits offshore
northwestern Australia and, subject to execution of binding agreements,
toll the production through existing NWS processing and liquefaction
facilities in Karratha, Australia. Hess would then market liquefied
natural gas (LNG) to customers in Asia Pacific.
NWS is a joint venture between BHP Billiton Petroleum (North West Shelf)
Pty Ltd, BP Developments Australia Pty Ltd, Chevron Australia Pty Ltd,
Japan Australia LNG (MIMI) Pty Ltd, Shell Australia Pty Ltd and Woodside
Energy Ltd (Operator). Hess and NWS plan to conduct joint engineering
studies and further progress commercial discussions.
“This arrangement would bring together Hess’ strong deepwater drilling
and development capabilities with NWS’s proven track record in natural
gas processing and liquefaction,” said President and Chief Operating
Officer Greg Hill. “The combination provides an attractive option for
Hess to commercialize its important Equus natural gas resource in a
manner that delivers secure, reliable energy supplies into Asia Pacific
LNG markets and creates value for our shareholders.”
Hess holds 100 percent interests in both the WA-390-P and WA-474-P
permits that contain the Equus fields. These permits cover over 1
million acres and are located approximately 115 miles off the northwest
coast of Australia in water depths of approximately 3,600 feet. An Equus
sanction decision is not expected before 2017.
Hess Corporation is a leading global independent energy company engaged
in the exploration and production of crude oil and natural gas. More
information is available at www.hess.com.
This news release contains projections and other forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. These
projections and statements reflect the company’s current views with
respect to future events and financial performance. No assurances can be
given, however, that these events will occur or that these projections
will be achieved, and actual results could differ materially from those
projected as a result of certain risk factors. A discussion of these
risk factors is included in the company’s periodic reports filed with
the Securities and Exchange Commission.