Hess Corporation

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Address
One Allen Center
500 Dallas Street
Houston
Texas 77002
Tel 713 609 5000
Web http://www.hess.com

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Capex

Hess Corporation has announced a $4.4 billion capital and exploratory expenditure budget for 2008. Approximately $4.3 billion is targeted for Exploration and Production, with $1.6 billion for production, $1.5 billion for field developments and $1.2 billion for exploration.

Production expenditures of $1.6 billion include:

• Bakken Shale - in North Dakota's Williston Basin. Hess will increase the number of drilling rigs to eight from six and expand facilities for crude oil production.

• Okume Complex - a Hess operated offshore oil development in Equatorial Guinea (85 percent Hess working interest). The company will drill additional production and water injection wells.

• JDA - a gas development in the Malaysia-Thailand Joint Development Area (JDA) in the Gulf of Thailand (50 percent working interest). Investments include installation of wellhead platforms and the drilling of production wells.

Field development expenditures of $1.5 billion include:

• Shenzi - a deepwater Gulf of Mexico oil and gas development (28 percent working interest). Production wells will be drilled throughout the year and the tension leg platform and topsides will be installed in the second quarter. Production is on schedule to commence by mid-2009.

• Valhall - an oil and gas field in Norway (28 percent working interest). Redevelopment of the field is ongoing.

• Ujung Pangkah - a Hess operated oil and gas development in East Java, Indonesia (75 percent working interest). Phase 2 of the plan is the development of oil reserves. Oil production is on schedule to commence in early 2009.

Exploration and exploitation expenditures of $1.2 billion include appraisal drilling in the Hess-operated Pony discovery (100 percent working interest) as well as the Tubular Bells discovery (20 percent working interest) in the deepwater Gulf of Mexico. Other 2008 exploration prospects include four initial exploratory wells on Block WA-390-P in the Northwest Shelf of Australia and one well each in Block 54 offshore Libya, the Cape Three Points South Block offshore Ghana, and the BMS-22 Block in the Santos Basin offshore Brazil. Expenditures are also budgeted for geological and geophysical activities.

Production

The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 390,000 barrels per day in the fourth quarter of 2007, an increase of 24,000 from the fourth quarter of 2006. In the fourth quarter of 2007, the Corporation's average worldwide crude oil selling price, including the effect of hedging, was $76.11 per barrel, an increase of $25.35 per barrel from the fourth quarter of 2006. The Corporation's average worldwide natural gas selling price was $6.93 per Mcf in the fourth quarter of 2007, an increase of $1.68 from the fourth quarter of 2006.

In 2006, the company produced an average of 359,000 barrels of oil equivalent per day, compared to 335,000 barrels per day in 2005. The increase in production resulted primarily from the resumption of operations in the Waha concessions (Hess 8%) in Libya, initial production from the Atlantic (Hess 25%) and Cromarty (Hess 90%) Fields in the United Kingdom North Sea and a full year of production from the Phase 1 development of the Malaysia/Thailand Joint Development Area (JDA) (Hess 50%).

In 2005, Amerada Hess produced 335,000 barrels of oil equivalent per day, compared to 342,000 barrels per day in 2004.

Reserves

Oil and gas proved reserves increased to 1,330 million barrels of oil equivalent at the end of 2007 from 1,243 million barrels at the end of 2006. During 2007, the Corporation added 234 million new barrels of oil equivalent to proved reserves. These additions, which are subject to final review, replaced approximately 167 percent of the Corporation's 2007 production and increased its reserve life to 9.5 years.

Hess Reported proved reserves of 1,243 million barrels at the end of 2006

In 2005, the company's proved reserves increased to 1.1 billion barrels of oil equivalent at year-end, and they replaced approximately 140% of our production at a finding, development and acquisition cost of about $13.60 per barrel. Reserve life improved to 8.8 years, marking the third consecutive year in which Amerada Hess has lengthened their reserve life.

Who's Who

John J. O'Connor
Executive Vice President and President, Worldwide Exploration & Production
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John B. Hess
Chairman of the Board and Chief Executive Officer
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Nicholas F. Brady
Director
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J. Barclay Collins II
Executive Vice President and General Counsel, Director
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Edith E. Holiday
Director
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Thomas H. Kean
Director
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Dr. Risa Lavizzo-Mourey
Director
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Craig G. Matthews
Director
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Frank A. Olson
Director
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Ernst H. von Metzsch
Director
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Robert N. Wilson
Director
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F. Borden Walker
Executive Vice President and President, Marketing and Refining
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B. J. Bohling
Senior Vice President, Human Resources
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E. C. Crouch
Senior Vice President, Exploration and Production, Worldwide Technology
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J. A. Gartman
Senior Vice President, Energy Marketing
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S. Heck
Senior Vice President, Exploration and Production – Americas and West Africa
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L. H. Ornstein
Senior Vice President, Marketing and Refining Supply and Financial Controls
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H. Paver
Senior Vice President, Global New Business Development
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J. P. Rielly
Senior Vice President and Chief Financial Officer
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G. F. Sandison
Senior Vice President, Exploration and Production - Europe, North Africa and Asia
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J. J. Scelfo
Senior Vice President, Finance and Corporate Development
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Bill Drennen
Senior Vice President, Global Exploration and New Ventures
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Sachin Mehra
Vice President and Treasurer of the Corporation
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Offices

United States
Head Office
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United Kingdom
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Norway
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