Hess to keep Bakken assets

Although he is clear there are no “sacred cows” in the boardroom, Hess Corp.’s top executive says the company is keeping its Bakken assets despite pressure to sell them from minority shareholder Elliott Associates L.P. and its associated entity Elliott International Ltd.

“We have transformed Hess into a predominantly exploration and production company, which is part of a multi-year strategy to grow shareholder value. This strategy is focused on developing lower risk, higher return assets such as those related to our leadership position in the Bakken oil shale of North Dakota.”

In a Jan. 30 conference call with analysts, Hess said keeping both the Bakken and Utica U.S. unconventional plays was the right strategy for the company, and that all major asset divestures had already been made, including the Eagle Ford, or announced.

In 2012 Hess’ crude oil and natural gas production was 406,000 barrels of oil equivalent per day, a 10 percent increase from 2011 and one that partly resulted from “strong operating performance in the Bakken,” he said.

Net production from Hess’ Bakken assets in North Dakota averaged 56,000 barrels of oil equivalent per day in 2012, up 87 percent from 2011.

—Kay Cashman

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