Linking the Bakken to China

By Staff | September 06, 2013

Since the beginning of 2012, 18 of the top 50 wells in the North Dakota portion of the Bakken have been Hess Corp.-operated. In the second quarter of this year, the company’s Bakken production total rose 16 percent from the same period in 2012. The company also reduced its well costs in the second quarter of 2013 by 28 percent compared to the same period in 2012. Greg Hill, executive vice president of worldwide exploration and production, said the global energy firm remains optimistic about the long-term upside of the play.

That enthusiasm is reflected in two of the firm’s latest announcements. In an effort to become a pure play exploration and production company, Hess has sold its energy marketing business for roughly $1.025 billion. Hess has also signed a contract with China National Petroleum Corp. for onshore unconventional exploration in the Malang Bloc of the Santanghu Basin in northwest China. According to a company spokesperson, the contract includes rights for Hess to participate with CNPC if oil or gas in commercial quantities is found. The block covers 200,000 acres of Permian Lucaogou Shale, and the agreement “builds upon our company’s unconventional experience in the Bakken and Utica Shale plays,” the spokesperson said.