Amerada Hess to Return to Libya; Oasis Group to Resume Operations After 19-Year Absence.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 (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, in conjunction with its Oasis Group partners ConocoPhillips and Marathon Oil, it has reached agreement with the Libyan National Oil Corporation on the terms under which it will return to its former oil and gas production operations in the Waha concessions in Libya. The Libyan National Oil Corporation will hold a 59.16 percent interest, ConocoPhillips and Marathon Oil will each hold a 16.33 percent interest, and Amerada Hess will hold an 8.16 percent interest. The concessions encompass almost 13 million acres located in the Sirte Basin, which is one of the most prolific oil and gas producing areas of Libya, and contain sizable undeveloped oil and gas resources. Amerada Hess will add in excess of 85 million barrels of oil equivalent to the company's proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. as a result of the reentry reentry n. taking back possession and going into real property which one owns, particularly when a tenant has failed to pay rent or has abandoned the property, or possession has been restored to the owner by judgment in an unlawful detainer lawsuit. to Libya, and approximately 20-25,000 net barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. of production. "We appreciate the opportunity to return to our operations in Libya after a 19 year absence," said John Hess, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We look forward to working once again with our partners to increase proved reserves and production capacity at the Waha concessions." The fiscal terms will be similar to the terms in effect at the time of the suspension of the U.S. partners' activities in 1986. The reentry terms include a 25-year extension of the concessions to 2031-34 and a payment to the Libyan National Oil Corporation of $1.3 billion ($260 million net to Amerada Hess) for reentry and the extension of the concessions. In addition, the companies will make a contribution to unamortized investments made since 1986 of $530 million ($106 million net to Amerada Hess) that were agreed to be paid as part of the 1986 standstill agreement to hold the assets in escrow for the U.S. partners. 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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