Hess budgets $2.7 billion for unconventional E&P in 2013

Hess Corp. announced a 2013 exploration and production budget of $6.7 billion, of which 40% will be dedicated to unconventional oil and gas plays.

Greg Hill, president of Hess Worldwide E&P, said the company plans to spend $2.2 billion in the Bakken formation this year compared with $3.1 billion in 2012.

“This reduced level of spend is driven by lower well costs associated with our transition to pad drilling…and decreased investments in infrastructure projects,” Hill said of the Bakken.

“In addition, we plan to increase our expenditures in the emerging Utica shale play to $400 million from $300 million last year,” he said. Hess is drilling appraisal wells in the Utica play in Ohio.

In the Bakken, Hess operates 14 rigs in North Dakota and plans to complete expansion of its Tioga gas plant this year.