Hess Plans To Spend $5.6B In 2011

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Hess, the New York-based integrated oil company, said it plans to spend $5.64 billion this year with 98% of that total devoted to exploration and production projects. The 2011 budget for Hess is barely above the 2010 spending level of $5.5 billion. Hess said the 2011 budget will be funded by existing cash flow.

More than half the spending, $3 billion, will be in the U.S., including North Dakota oil fields purchased last year for about $1.42 billion, according to Bloomberg News. Hess (HES) is planning to have 15 active rigs in the Bakken Shale and expand its facilities there this year.

The company said it will continue to move forward with offshore exploration projects in the coastal areas of Egypt, Indonesia, Ghana and Brunei. In Africa, Hess projects spending $450 million, with the balance targeted for Asia and other regions, Reuters reported.

Hess is also planning shale-oil and gas projects in the Eagle Ford Shale in Texas and the Paris Basin in France.