Hess lands oil contract in Iraq

Hess Corp. announced Wednesday that a deal for production-sharing contracts for oil fields in the Kurdish region of Iraq is good for its global portfolio. Hess announced it signed production-sharing contracts with the Kurdistan Regional Government of Iraq through a partnership with Petroceltic International PLC. The deal involves the Dinarta and Shakrok exploration blocks. Hess serves as the operator of the blocks located northeast of the Kurdish capital Erbil. Each contract has a three-year exploration period for seismic surveys and at least one exploration well. "This expansion into Kurdistan is a good strategic fit for our global portfolio and offers a material opportunity to grow our reserves and production," said Greg Hill, president of worldwide exploration and production for Hess, in a statement. The Iraqi finance minister in May confirmed the first oil export payment to contractors in the Kurdish region. Hess didn't highlight the reserve potential of the fields. In its second quarter earnings report, Hess said its net income rose from $375 million in the second quarter of 2010 to $607 million. Oil and natural gas production, however, was down from 415,000 barrels of oil equivalent per day during the second quarter of 2010 to just 372,000 boe per day for 2011. Hess attributed the decline to the conflict in Libya and the sale of assets in the North Sea.