Amerada Hess Acquires Egyptian Assets.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Amerada Hess Corporation The Hess Corporation (NYSE: HES) is an integrated oil company based in New York City. The company changed its name from Amerada Hess as of May 8, 2006. The company explores, produces, transports, and refines oil. (NYSE NYSE See: New York Stock Exchange :AHC AHC Appalachian Hardwood Center AHC American Heritage Center (University of Wyoming, Laramie, WY) AHC American Horse Council AHC Association for History and Computing AHC Australian Heritage Commission AHC Assault Helicopter Company ) announced today that it has reached an agreement with Apache Corporation to acquire its 55% working interest in the deepwater section of the West Mediterranean Block 1 Concession, in The Arab Republic of Egypt, for $413 million. In a separate transaction, Apache will acquire Amerada Hess' interests in certain producing properties located in the Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. in West Texas and New Mexico for $404 million. The deepwater section of West Mediterranean Block 1 covers an area of 2,370 km2 (586,000 acres), and contains the Abu Sir, El King, El Max and Al Bahig natural gas discoveries. Water depths in the deepwater section of the block range from 100 to 1,250 meters. A 25-year development lease for the deepwater section of the block was signed in June 2005. A gas sales agreement is in place for sales to the Egyptian market, with commencement of production planned by January 1, 2009. Commenting on the agreement, John O'Connor, President Worldwide E&P, Amerada Hess, said, "We are delighted with this acquisition which fits with our strategy to grow our international natural gas business. Hess' deepwater and subsea Subsea is a general term frequently used to refer to equipment, technology, and methods employed to explore, drill, and develop oil and gas fields that exist below the ocean floors. This may be in "shallow" or "deepwater". experience in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east , West Africa, and North Sea will be an advantage as we develop the existing gas discoveries. In addition, we see further exploration potential on the block which will strengthen our global exploration portfolio." The West Mediterranean transaction is subject to Egyptian Government and other regulatory approvals. The Permian Basin transaction is subject to the exercise of preferential rights. Both transactions are subject to standard closing requirements. Completion is expected in the first quarter of 2006. About Amerada Hess Corporation Amerada Hess, headquartered in New York, is a global integrated energy company engaged in the exploration for and the production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum products. |
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