Amerada Hess Corporation is a Delaware corporation, incorporated in 1920. The
Registrant and its subsidiaries explore for, produce, purchase, transport and
sell crude oil and natural gas. These exploration and production activities take
place in the United States, United Kingdom, Norway, Denmark, Equatorial Guinea,
Algeria, Gabon, Indonesia, Thailand, Azerbaijan, Malaysia and other countries.
The Corporation also manufactures, purchases, trades and markets refined petroleum
and other energy products. The Corporation owns 50% of a refinery joint venture
in the United States Virgin Islands, and another refining facility, terminals
and retail gasoline stations located on the East Coast of the United States.
Exploration and Production
United States.'Amerada Hess Corporation operates mainly offshore in the Gulf
of Mexico and onshore in Texas, Louisiana and North Dakota.
United Kingdom.'The Corporation's activities in the United Kingdom are conducted
by its wholly-owned subsidiary, Amerada Hess Limited.
Norway.'The Corporation's activities in Norway are conducted through its wholly-owned
Norwegian subsidiary, Amerada Hess Norge A/S.
Denmark.'Amerada Hess ApS, the Corporation's wholly-owned Danish subsidiary,
operates the South Arne Field.
Equatorial Guinea. The Corporation has interests in production sharing contracts
covering three offshore blocks, acquired in August 2001.
Malaysia'' Thailand. In 2003, the Corporation exchanged its oil and gas assets
in Colombia for an additional 25% interest in long-lived natural gas reserves
in the joint development area of Malaysia and Thailand, bringing the Corporation's
interest to 50%. This production sharing contract has a gas sales agreement
for the sale of the first phase of gas production.
Algeria. The Corporation has a 49% interest in a venture with the Algerian
national oil company that is redeveloping three oil fields.
Gabon. Amerada Hess Production Gabon, the Corporation's 77.5% owned Gabonese
subsidiary, has a 10% interest in the Rabi Kounga Field and interests in two
other Gabonese fields.
Indonesia. . A natural gas discovery in the Pangkah production sharing contract
area is being developed.
Thailand. The Corporation has a 15% interest in the Pailin gas field offshore
Thailand. Net production from the Corporation's interest averaged 52,000 Mcf
and 35,000 Mcf of natural gas per day in 2003 and 2002, respectively. Additional
appraisal drilling is planned in 2004 on an onshore discovery on Phu Horm Block
E5N (AHC'35%).
Azerbaijan. The Corporation has a 2.72% interest in the AIOC Consortium in
the Caspian Sea.
Refining and Marketing
Refining.'The Corporation owns a 50% interest in the HOVENSA refining joint
venture in the United States Virgin Islands with a subsidiary of Petroleos de
Venezuela'S.A. (PDVSA). In addition, it owns and operates a refining facility
in Port Reading, New Jersey.
Port Reading Facility.'The Corporation owns and operates a fluid catalytic
cracking facility in Port Reading, New Jersey. This facility processes vacuum
gas oil and residual fuel oil.
Marketing.'The Corporation markets refined petroleum products on the East Coast
of the United States to the motoring public, wholesale distributors, industrial
and commercial users, other petroleum companies, governmental agencies and public
utilities. It also markets natural gas to utilities and other industrial and
commercial customers. The Corporation's energy marketing activities include
the sale of electricity. The Corporation has a 50% voting interest in a consolidated
partnership that trades energy commodities and derivatives. The Corporation
also takes trading positions for its own account.
The Corporation has 22'terminals with an aggregate storage capacity of 21'million
barrels in its East Coast marketing areas.
The Corporation has a wholly-owned subsidiary that provides distributed electricity
generating equipment to industrial and commercial customers as an alternative
to purchasing electricity from local utilities. The Corporation also has invested
in long-term technology to develop fuel cells for electricity generation through
a venture with other parties.