In 2014, net production averaged 329,000 barrels of oil equivalent per day, compared with 336,000 barrels of oil equivalent per day in 2013. The effect of asset sales, civil unrest in Libya and natural declines were partially offset by production growth in the Bakken and Utica shale plays, the Llano Field in the deepwater Gulf of Mexico and the Valhall Field offshore Norway.

Net production from the Bakken rose 24 percent to 83,000 barrels of oil equivalent per day in 2014 from 67,000 barrels of oil equivalent per day in 2013. During 2014, the Company operated 17 rigs and brought online 238 new wells while continuing to invest in infrastructure projects including the Tioga Gas Plant expansion, which was operational at the end of the first quarter of 2014. The expanded Tioga Gas Plant allows processing of up to 250 million cubic feet of Visualization Room, Houston, Texas natural gas per day, resulting in increased production of natural gas liquids and enabling a significant reduction in flaring. As a result of its successful downspacing pilot tests, the Company announced in November that 13 wells per 1,280 acre Drilling Spacing Unit (DSU) has become its standard basis for development in the Bakken, increasing the number of total drilling locations by approximately 33% to more than 4,000.

In the Utica Shale Play in eastern Ohio, where the Company participates in a 50% joint venture with its partner CONSOL Energy, net production increased to 9,000 barrels of oil equivalent per day from 2,000 barrels of oil equivalent per day in 2013. In 2014, the joint venture began to transition from appraisal to early development and during the year operated four rigs, drilled 38 wells, completed 36 wells and brought 39 new wells online. Also in 2014, Hess executed the sale of 77,000 net acres in the dry gas area of the play which generated cash proceeds of approximately $1.1 billion.

In the deepwater Gulf of Mexico, net production averaged 70,000 barrels of oil equivalent per day in 2014, compared to 59,000 barrels of oil equivalent per day in 2013. Production was higher as a result of a full year of production from the Llano-4 well and lower downtime.

In West Africa, net production from Block G in Equatorial Guinea (85% working interest, operator) averaged 43,000 barrels of oil equivalent per day in 2014, compared to 44,000 barrels of oil equivalent per day in 2013. Drilling at the Okume Complex continued throughout 2014 with four new producers being completed and brought online to offset natural field decline.

In the Norwegian North Sea, net production from the Valhall Field (64% working interest) averaged 31,000 barrels of oil equivalent per day in 2014 compared to 23,000 barrels of oil equivalent per day in 2013. The higher year over year production reflects the completion of the Valhall Redevelopment Project during 2013. In the Danish North Sea, net production from the South Arne Field (62% working interest, operator) ramped up to 13,000 barrels of oil equivalent per day compared to 9,000 barrels of oil equivalent per day in 2013. Following the installation of two new wellhead platforms in 2013, four new wells were drilled and brought into production during 2014.

In the deepwater Gulf of Mexico, production facilities were successfully installed at the Tubular Bells Field (57% working interest, operator) and first production was achieved in the fourth quarter of 2014. The first three producers are now online and continue to ramp up with a fourth expected to be brought online during 2015. Net production is expected to average South Arne Platform, North Danish Sea between 30,000 and 35,000 barrels of oil equivalent per day in 2015. Also in the Gulf of Mexico, the Stampede development (25% working interest, operator) was sanctioned by all project co-owners in October of 2014. Drilling is expected to commence in late 2015 with first oil targeted for 2018.

In Asia, the Malaysia/Thailand Joint Development Area (50% working interest) achieved first production at wellhead platform 11. The operator, Carigali Hess, continued progress on the installation of wellhead platform 12 as well as the Booster Compression project. At the North Malay Basin project in the Gulf of Thailand (50% working interest, operator) progress continues on the first phase of full field development. Engineering, procurement and fabrication activities are underway and commencement of development drilling is planned by the fourth quarter of 2015. Net production in 2014 averaged 40 million cubic feet per day through the early production system and is expected to stay at this level through 2016. Upon completion of the Full Field Development project in 2017, net production is planned to increase to 165 million cubic feet per day.

In Australia, Hess signed a non-binding Letter of Intent with the North West Shelf joint venture to process gas through its liquefied natural gas (LNG) facilities at Karratha. Next steps will be to execute a binding agreement with the North West Shelf joint venture, finalize front end engineering and design (FEED) for the project and engage with LNG buyers.

In 2014, the Company successfully completed the drilling of three appraisal wells and acquired 3D seismic in the deepwater Tano/Cape Three Points Block offshore Ghana. Hess holds a 44% paying interest and is the operator. Ghana National Petroleum holds an 11% paying interest and 10% carried interest in the block. These ownership percentages are based on terms of a farmout agreement with a third party that is subject to final approval by the Ghanaian government.

Hess also gained entry into deepwater acreage in 2014 including: the Chevron operated Sicily prospect in the Gulf of Mexico, the Esso E&P Guyana Limited operated Stabroek license offshore Guyana and four BP operated licenses offshore Nova Scotia. The Sicily-1 and Liza-1 wells in the Gulf of Mexico and Guyana, respectively, will be drilled in 2015.