Press Release: Amerada Hess grows Indonesian business

28/09/2004 -- Amerada Hess announced today two events that would further enhance and develop its business in Indonesia by increasing its interest in Ujung Pangkah Production Sharing Contract (PSC) and securing the position as joint operator of the Jambi Merang Joint Operating Board (JOB).

Under the first agreement Amerada Hess will receive an additional 12 percent in Pangkah plus a cash consideration from Dana Petroleum in an exchange arrangement for its 28 percent interest in the Hudson Field, located in the UK North Sea. The transaction is expected to be completed before end-year 2004, and is subject to agreement of the regulatory authorities in Indonesia, pre-emption rights of Pangkah contract partners and the receipt of all necessary approvals from other relevant parties.

Under a separate agreement, Amerada Hess is in the process of becoming the new joint operator of Jambi Merang JOB, replacing YPF Repsol following the sale of its interest. This transfer is subject to Indonesian regulatory approvals.

Amerada Hess is pleased to be adding to our operations in Indonesia. The exchange with Dana adds value to our business through increasing our share of the Pangkah PSC. Amerada Hess also looks forward to working closely with Pertamina to develop the gas resources of Jambi Merang.

Ujung Pangkah PSC area is located offshore East Java and contains the Pangkah Gas Field, on which a successful appraisal programme has recently been completed. A development plan has been approved by the Indonesian authorities and final negotiations for the sale of gas from the field are in progress.

Jambi Merang is located onshore Sumatra and contains the producing Gelam Field and the Pulau Gading and Sungai Kenawang fields which are currently in the pre-development stage. (end of release)

Further information:
Colin Munro, Amerada Hess Jakarta, phone no. 62 21 572 5744