The Rising Influence of Rising Affluence

[DewDiligence]

HES, Petronas ink deal to develop North Malay NG Basin:

http://finance.yahoo.com/news/hess-petronas-sign-partnership-agreements-132400055.html

Hess will have a 50 percent working interest and become operator of the project, which is expected to add discovered net resources of 80 million to 100 million barrels of oil equivalent to Hess’ portfolio.

First production is forecast to commence in 2013 at a net rate of approximately 40 million cubic feet of natural gas per day and increase in 2015 to an estimated 125 million cubic feet per day. The project will require a net investment for Hess of approximately $250 million in 2012 and an estimated $400 million per year between 2013 and 2015 [i.e. a cumulative $1.45B in 2012-2015].

This news wasn’t enough to stop HES from falling today in line with the broad market and oil stocks in particular; to the contrary, the projected expenditures of $1.45B in a politically risky area may have exacerbated the sell-off. I added more shares, FWIW.