Hess Corporation has built a strong business in the United Kingdom, Danish and Norwegian sectors of the North Sea, and more recently in the Volga Urals region of Russia.

Through focused exploitation and infill drilling, we continue to add and develop reserves in the less mature areas of this region and our core producing assets will provide a substantial portion of our global production and cash flows in the future.

Hess Corporation has been active on the United Kingdom Continental Shelf (UKCS) since hydrocarbon licensing commenced in 1964. In 2006 oil and gas production from the U.K. was 95,000 barrels of oil equivalent per day net to the Corporation. Principal non-operated interests include the Beryl field (Hess 22.2%) and two fields situated west of Shetlands - Schiehallion (Hess 15.7%) and Clair (Hess 9.3%). Opportunities exist in and around these fields for further resource exploitation and development. The Corporation's principal operated asset in the United Kingdom the Bittern field (Hess 28.3%). In 2006, gas production commenced from the Atlantic and Cromarty fields (Hess 25% / 90%) via the longest direct to shore sub-sea tie-back constructed in the North Sea.

Hess Corporation is operator of South Arne (Hess 57.5%), one of Denmark's most significant fields. The production facility, located approximately 150 miles west of Esbjerg in the Central North Sea, commenced production in 1999. In 2006 the field surpassed the one hundred million barrel milestone and successful appraisal drilling extended the northern limits of the field. Further development of the field is currently under evaluation. Production in 2006 averaged over 21,000 barrels of oil equivalent per day net to the Corporation.

Hess Corporation has been active in Norway for more than 30 years. The Valhall field (Hess 28.1%) has been producing since 1982, and accounts for the majority of the Corporation's Norwegian production, which averaged approximately 27,000 barrels of oil equivalent per day in 2006. A major field redevelopment project will begin in 2007 and will extend the field's life for several decades.

The Corporation is also a partner in the Snohvit development (Hess 3.3%) in Norway. Snohvit is Europe's first liquefied natural gas (LNG) export facility and is expected to achieve first gas in 2007 with contracted shipments bound for regasification terminals in the United States and Spain.

The Corporation's activities in Russia are conducted through its 80%-owned interest in a joint venture operating in the Volga-Urals region of Russia acquired in 2005. Production averaged 18,000 barrels per day in 2006 compared to 6,000 barrels per day in 2005.