Hess Corporation is an active participant in West Africa. Building on success in the late 1990s in Gabon, we have developed a strong position in exploration and production in Equatorial Guinea and are continuing to evaluate the offshore potential in the region.

The Corporation has a 49% interest in a joint venture with the Algerian national oil company where it has been active in redeveloping three oil fields, El Gassi, El Agreb and Zotti. The scope of the work program comprises a broad range of projects including the start-up of miscible gas flood to maximize oil recovery, development drilling, and upgrades to the existing facilities and infrastructure so that increased volumes of produced fluids can be safely managed.

The Corporation’s share of production averaged 22,000 barrels of crude oil per day in 2006.

In January 2006, the Corporation, in conjunction with its Oasis Group partners, re-entered its former oil and gas production operations in the Waha concessions in Libya (Hess 8.16%). The re–entry terms included a twenty five year extension of the concessions.

The Corporation’s net share of 2006 production from Libya averaged 23,000 barrels of oil per day.

The Corporation also owns a 100% interest in offshore exploration Area 54.

In January 2006, the Corporation acquired a 55% working interest in the deepwater section of the West Mediterranean Block 1 Concession (‘West Med’ Block) in Egypt. The Corporation has a 25–year development lease for the West Med Block, which contains four existing natural gas discoveries – Abu Sir, El King, Al Bahig & El Max, and additional exploration opportunities.

The Okume Complex (Hess 85%) celebrated first production in December 2006, less than 3 years after approval of the Plan of Development. The Okume Complex is comprised of the Okume, Oveng, Ebano and Elon fields which have been developed using a combination of two tension leg platforms and four fixed platforms. Production from the fields is gathered at a central processing facility (CPF) located at the shallow water Elon field. From there, a fifteen mile subsea pipeline connects the CPF to the Sendje Ceiba floating production, storage and offloading vessel (FPSO) for storage and offloading of crude production. The Okume Complex is anticipated to reach a net peak production rate of 40,000 barrels of oil per day in early 2008. The Ceiba Field, located in Block G, approximately twenty miles offshore, utilizes a floating production, storage and offloading vessel (FPSO). Hess Corporation operates the Ceiba Field with an 85% working interest. In 2006, net production from the Ceiba Field averaged 28,000 barrels of crude oil per day.

GABON Hess Corporation has been active in Gabon since 1989 and holds interests in eight onshore and offshore permits. The Corporation has three onshore fields in production, Rabi Kounga (Hess 10%), Atora (Hess 40%), and Toucan (Hess 50%). Production in Gabon averaged 12,000 barrels of oil per day in 2006.