TIOGA, N.D.--(BUSINESS WIRE)--May 19, 2014--
Hess Corporation (NYSE:HES) was joined today by Governor Jack Dalrymple,
Senator John Hoeven and a host of other government officials to
commemorate the recently completed expansion of the Tioga Gas Plant,
which more than doubles the operational capacity of the facility.
The project is part of a more than $1.5 billion infrastructure
investment made by Hess between 2012 and 2014 in North Dakota that has
significantly increased production of propane, methane, butane and
natural gasoline, and of ethane, a vital industrial product never before
produced in the state. The expansion also brings a substantial
improvement in efficiency and significantly reduces the amount of
natural gas flared at Hess’s operations, from about 25 percent before
the plant was shut down for the expansion project to 15 to 20 percent
today.
“The Tioga Gas Plant was built in 1954, just three years after we
drilled the very first oil well in the state of North Dakota,” said John
Hess, Chief Executive Officer of Hess Corporation. “Today, as one of the
largest oil and gas producers in the Bakken, we are committed to
responsible long-term growth in North Dakota and proud to contribute to
the state’s infrastructure.”
The plant is fully operational and is currently processing about 120
million standard cubic feet of gas per day (MMSCFD), with the
expectation that through the combination of Hess and third-party gas it
will soon process at least 250 MMSCFD with the potential to increase
beyond 300 MMSCFD. Prior to expansion, the plant processed about 100
MMSCFD.
“North Dakota leads the oil and gas industry because it is an attractive
place to invest, with strong public-private partnerships, responsible
regulation and a firm commitment to work hand-in-hand with the business
community,” Hess said. “Since 2010, we have invested more than $10
billion in North Dakota, we currently have a 17 rig drilling program
with 2014 net production expected to average 80,000 to 90,000 barrels of
oil equivalent per day, and are proud to contribute to the state’s
economic success. I would like to personally thank Governor Dalrymple,
Senators Hoeven and Heitkamp, Rep. Cramer, and the state regulatory
agencies that made these investments possible.”
“I’m very excited about the opening of Hess Corporation’s expanded gas
plant in Tioga,” Governor Jack Dalrymple said. “It means leadership for
other companies that are taking advantage of the Bakken oil boom. It’s
an example of what we need to see, which is more capturing of natural
gas and more added value to the product. We are very grateful to Hess
for showing the way.”
“We appreciate the tremendous investment Hess is making in North Dakota,
which amounts to $1.5 billion not only for this expansion, but also for
four new gas gathering projects the company expects to complete by the
end of the year,” U.S. Senator John Hoeven said. “This new expansion
more than doubles the plant’s capacity to produce natural gas, more than
triples the amount of propane available to North Dakota and the region,
and at the same time significantly reduces flaring in the oil patch.
That’s a huge win for our state and our country.”
“Hess has a long history in North Dakota, and it’s great news the
company is continuing to invest in our state and build on its current
facilities,” said U.S. Senator Heidi Heitkamp. “With natural gas, North
Dakota has an excellent opportunity to greatly expand its already
incredible energy production and move toward fully using our vast
natural resources. To make this a reality, we need to make significant
infrastructure investments, which is why the Tioga Gas Plant expansion
is so important. For years, we have wasted valuable natural gas through
flaring, but with critical investments in processing capacity, like we
are celebrating today, we can move closer toward energy independence.”
“The legacy of Hess in North Dakota is inseparable from the story of our
booming economy. This expansion grows our portfolio of hydrocarbon and
natural gas exports while reducing flaring, continuing their rich
tradition of responsibly developing our state’s energy capabilities,”
said Congressman Kevin Cramer.
Hess Corporation has a world-class acreage position, with 640,000 net
acres in the Bakken. The company’s full year 2014 production forecast
for the Bakken is 80,000 to 90,000 barrels of oil equivalent per day.
The gas plant expansion, as well as other recent infrastructure
improvements made in North Dakota, is part of the company’s growth
strategy.
“As a leading operator in one of the best shale plays in the world, the
Bakken will be the single biggest contributor to our production growth
over the next five years,” said Greg Hill, President and Chief Operating
Officer of Exploration and Production for Hess. “We expect that by 2018,
we’ll be producing 150,000 barrels of oil equivalent per day from the
Bakken.”
Hill was proud to credit employees for the successful expansion project.
“Our successes here are made possible by the incredibly talented
employees and contractors we have in place, who have worked tirelessly
to bring this plant online safely,” Hill said.
At the peak of plant expansion, there were about 1,400 people working at
the site, with more than 5 million total man-hours accumulated over
about a 2 1/2 year period. During the final 9 months to complete the
project and commission the plant, these crews worked 2.3 million man
hours without a single recordable injury.
Hess Corporation is a leading global independent energy company engaged
in the exploration and production of crude oil and natural gas. More
information on Hess Corporation is available at http://www.hess.com.
Source: Hess Corporation
Investor:
Jay Wilson, 212-536-8940
Media:
John
Roper, 713-496-4546