Letter Report on Proved Reserve Audit – Hess

DeGolyer and MacNaughton

5001 Spring Valley Road
Suite 800 East
Dallas, Texas 75244 LETTER REPORT
on
PROVED RESERVES AUDIT
as of
DECEMBER 31, 2009
of
CERTAIN PROPERTIES
attributable to
HESS CORPORATION

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DeGolyer and MacNaughton

5001 Spring Valley Road
Suite 800 East
Dallas, Texas 75244 January 15, 2010 Board of Directors
Hess Corporation
1185 Avenue of the Americas
New York, New York 10036 Gentlemen: Pursuant to your request, we have
conducted a reserves audit of the net proved crude oil, condensate, natural gas
liquids (NGL), and natural gas reserves, as of December 31, 2009, of certain
selected properties of Hess Corporation (Hess) to determine the reasonableness
of Hess estimates. Hess has represented to us that these properties account for
79 percent on a net equivalent barrel basis of Hess153 net proved reserves, as of
December 31, 2009. We have reviewed information provided to us by Hess that it
represents to be Hess153 estimates of the net reserves, as of December 31, 2009,
for the same properties as those which we evaluated. Reserves included
herein are expressed as net reserves as represented by Hess. Gross reserves are
defined as the total estimated petroleum to be produced from these properties
after December 31, 2009. Net reserves are defined as that portion of the gross
reserves attributable to the interests owned by Hess after deducting all
interests owned by others, except in Russia, where Hess owns 80 percent of a
consolidated corporate joint venture. As a result, Hess net reserves include
20 percent of the Russian joint venture reserves not owned by Hess. Certain
properties in which Hess has an interest are subject to the terms of various
profit sharing agreements. The terms of these agreements generally allow for
working interest participants to be reimbursed for portions of capital costs and
operating expenses and to share in the profits. The reimbursements and profit
proceeds are converted to a barrel of oil equivalent or standard cubic foot of
gas equivalent by dividing by product prices to determine the “entitlement
reserves.” These entitlement reserves are equivalent in principle to net
reserves and are used to calculate an equivalent net share, termed an
“entitlement interest.” In this report,

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DeGolyer and MacNaughton Hess net reserves or interest for certain
properties subject to these agreements is the entitlement based on Hess153 working
interest. Estimates of oil, condensate, NGL, and natural gas reserves
should be regarded only as estimates. Such estimates are based upon information
that is currently available and may change as further production history and
additional information become available. Such estimates are also subject to the
uncertainties inherent in the application of judgmental factors in interpreting
such information. Data used in this audit were obtained from reviews with
Hess personnel, Hess files, from records on file with the appropriate regulatory
agencies, and from public sources. Additionally, this information includes data
supplied by Petroleum Information/Dwights LLC; Copyright 2009 Petroleum
Information/Dwights LLC. In the preparation of this report we have relied,
without independent verification, upon such information furnished by Hess with
respect to property interests, production from such properties, costs of
operation and development, prices for production, agreements relating to current
and future operations and sale of production, and various other information and
data that were accepted as represented. A field examination of the properties
was not considered necessary for the purposes of this report. In our opinion,
the adequacy and quality of the data provided to us was sufficient for us to
conduct this reserves audit. The Hess net proved reserves attributable to
these properties as of December 31, 2009, and which represent approximately
79 percent of total Hess net reserves on a net equivalent barrel basis, are as
follows, expressed in millions of barrels (MMbbl), billions of cubic feet (Bcf),
and millions of barrels of oil equivalent (MMboe):

		Estimated by Hess
		Net Proved Reserves as of December 31, 2009
						Natural
		Oil and				Gas				Natural				Oil
		Condensate				Liquids				Gas				Equivalent
		(MMbbl)				(MMbbl)				(Bcf)				(MMboe)
United States			144.7				23.4				200.6				201.5
Europe including Russia			216.9				17.0				463.7				311.2
Africa			257.5				0.0				48.2				265.5
Asia and other			61.1				7.7				1,724.8				356.3
Total			680.2				48.1				2,437.3				1,134.5

Note:		Gas is converted to oil equivalent using a factor of 6,000 cubic feet of gas per 1 barrel of oil equivalent.

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DeGolyer and MacNaughton Opinion The
assumptions, data, methods and procedures used by DeGolyer and MacNaughton to
conduct the reserves audit are appropriate for purposes of this report. In
our opinion, the estimated net proved reserves prepared by Hess as shown in the
table above comply with the definitions and disclosure guidelines of Paragraphs
932-235-50-4, 932-235-50-6 through 932-235-50-9 of the Accounting Standards
Update 932-235-50, Extractive Industries : Oil and Gas (Topic 932): Oil and
Gas Reserve Estimation and Disclosures (January 2010) of the Financial
Accounting Standards Board and Rules 4:10(a) (1):(32) of Regulation S:X and
Items 1201, 1202(a)(1), (2), (3), (4) and 1203 of Regulation S-K of the
Securities and Exchange Commission (SEC) and the reserves estimation
methodologies employed are appropriate. In comparing the detailed net
proved reserves estimates by field prepared by us and by Hess, we have found
differences, both positive and negative. It is our opinion that the total net
proved reserves estimates prepared by Hess as of December 31, 2009, on the
properties reviewed by us and referred to in the table above, when compared on
the basis of net equivalent barrels, do not differ materially from those
prepared by us. Methodology and Procedures
Estimates of reserves were prepared by the use of standard geological and
engineering methods generally accepted by the petroleum industry. The method or
combination of methods used in the analysis of each reservoir was tempered by
experience with similar reservoirs, stage of development, quality and
completeness of basic data, and production history. When applicable, the
volumetric method was used to estimate the original oil in place (OOIP) and the
original gas in place (OGIP). Structure and isopach maps were constructed to
estimate reservoir volume. Electrical logs, radioactivity logs, core analyses,
and other available data were used to prepare these maps as well as to estimate
representative values for porosity and water saturation. When adequate data were
available and when circumstances justified, material balance and other
engineering methods were used to estimate OOIP or OGIP.

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DeGolyer and MacNaughton Estimates of ultimate recovery were obtained
after applying recovery factors to OOIP or OGIP. These recovery factors were
based on consideration of the type of energy inherent in the reservoirs,
analyses of the fluid properties, the structural positions of the properties,
and the production histories. When applicable, material balance and other
engineering methods were used to estimate recovery factors. An analysis of
reservoir performance, including production rate, reservoir pressure, and
gas-oil ratio behavior, was used in the estimation of reserves. For
depletion-type reservoirs or those whose performance disclosed a reliable
decline in producing-rate trends or other diagnostic characteristics, reserves
were estimated by the application of appropriate decline curves or other
performance relationships. In the analyses of production-decline curves,
reserves were estimated only to the limits of economic production or to the
limit of the production licenses as appropriate. Petroleum reserves
estimated by Hess and by us are classified as proved and are judged to be
economically producible in future years from known reservoirs under existing
economic and operating conditions and assuming continuation of current
regulatory practices using conventional production methods and equipment.
Reserves were estimated only to the limit of economic production rates under
existing economic and operating conditions using prices and costs consistent
with the effective date of this report, including consideration of changes in
existing prices provided only by contractual arrangements but not including
escalations based upon future conditions. Definition of
Reserves Proved reserves classifications used in this report
are in accordance with the reserves definitions of Rules 4:10(a) (1):(32) of
Regulation S:X of the SEC of the United States. The petroleum reserves are
classified as follows: Proved oil and gas reserves : Proved oil and gas
reserves are those quantities of oil and gas, which, by analysis of geoscience
and engineering data, can be estimated with reasonable certainty to be
economically producible:from a given date forward, from known reservoirs, and
under existing economic conditions, operating methods, and government
regulations:prior to the time at which contracts providing the right to operate
expire, unless evidence

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DeGolyer and MacNaughton indicates that renewal is reasonably certain,
regardless of whether deterministic or probabilistic methods are used for the
estimation. The project to extract the hydrocarbons must have commenced or the
operator must be reasonably certain that it will commence the project within a
reasonable time. (i) The area of the reservoir considered as proved includes:
(A) The area identified by drilling and limited by fluid contacts, if any; and,
(B) Adjacent undrilled portions of the reservoir that can, with reasonable
certainty, be judged to be continuous with it and to contain economically
producible oil or gas on the basis of available geoscience and engineering data.
(ii) In the absence of data on fluid contacts, proved quantities in a reservoir
are limited by the lowest known hydrocarbons (LKH) as seen in a well penetration
unless geoscience, engineering, or performance data and reliable technology
establishes a lower contact with reasonable certainty. (iii) Where direct
observation from well penetrations has defined a highest known oil
(HKO) elevation and the potential exists for an associated gas cap, proved oil
reserves may be assigned in the structurally higher portions of the reservoir
only if geoscience, engineering, or performance data and reliable technology
establish the higher contact with reasonable certainty. (iv) Reserves which can
be produced economically through application of improved recovery techniques
(including, but not limited to, fluid injection) are included in the proved
classification when: (A) Successful testing by a pilot project in an area of the
reservoir with properties no more favorable than in the reservoir as a whole,
the operation of an installed program in the reservoir or an analogous
reservoir, or other evidence using reliable technology establishes the
reasonable certainty of the engineering analysis on which the project or program
was based; and, (B) The project has been approved for development

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DeGolyer and MacNaughton by all necessary parties and entities, including
governmental entities. (v) Existing economic and operating conditions include
prices and costs at which economic producibility from a reservoir is to be
determined. The price shall be the average price during the 12-month period
prior to the ending date of the period covered by the report, determined as an
unweighted arithmetic average of the first-day-of-the-month price for each month
within such period, unless prices are defined by contractual arrangements,
excluding escalations based upon future conditions. Developed oil and gas
reserves : Developed oil and gas reserves are reserves of any category that
can be expected to be recovered: (i) Through existing wells with existing
equipment and operating methods or in which the cost of the required equipment
is relatively minor compared to the cost of a new well; and (ii) Through
installed extraction equipment and infrastructure operational at the time of the
reserves estimate if the extraction is by means not involving a well.
Undeveloped oil and gas reserves : Undeveloped oil and gas reserves are
reserves of any category that are expected to be recovered from new wells on
undrilled acreage, or from existing wells where a relatively major expenditure
is required for recompletion. (i) Reserves on undrilled acreage shall be limited
to those directly offsetting development spacing areas that are reasonably
certain of production when drilled, unless evidence using reliable technology
exists that establishes reasonable certainty of economic producibility at
greater distances. (ii) Undrilled locations can be classified as having
undeveloped reserves only if a development plan has been adopted indicating that
they are scheduled to be drilled within five years, unless the specific
circumstances justify a longer time.

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DeGolyer and MacNaughton (iii) Under no circumstances shall estimates for
undeveloped reserves be attributable to any acreage for which an application of
fluid injection or other improved recovery technique is contemplated, unless
such techniques have been proved effective by actual projects in the same
reservoir or an analogous reservoir, as defined in Rule 4-10(a)(2) of
Regulation S-X, or by other evidence using reliable technology establishing
reasonable certainty. Primary Economic Assumptions
The following economic assumptions were used for estimating existing and
future prices and costs: Oil and Condensate Prices Hess has
represented that the oil and condensate prices were based on a 12-month average
price (reference price), calculated as the unweighted arithmetic average of the
first-day-of-the-month price for each month within the 12-month period prior to
the end of the reporting period, unless prices are defined by contractual
arrangements. Hess supplied appropriate differentials by field to the relevant
reference prices and the prices were held constant thereafter. NGL
Prices Hess has represented that the NGL prices were based on a 12-month
average price, calculated as the unweighted arithmetic average of the
first-day-of-the-month price for each month within the 12-month period prior to
the end of the reporting period, unless prices are defined by contractual
arrangements. These prices were held constant over the lives of the properties.
Natural Gas Prices Hess has represented that the natural gas
prices were based on a reference price, calculated as the unweighted arithmetic

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DeGolyer and MacNaughton average of the first-day-of-the-month price for each
month within the 12-month period prior to the end of the reporting period,
unless prices are defined by contractual arrangements. The gas prices were
calculated for each property using differentials furnished by Hess and held
constant thereafter. Operating Expenses and Capital Costs
Operating expenses and capital costs, based on information provided by Hess,
were used in estimating future costs required to operate the properties. Future
costs are typically based on existing costs and where appropriate adjusted to
reflect planned changes in operating conditions. These costs were not escalated
for inflation. Possible Effects of Regulations
Hess153 oil and gas reserves have been estimated assuming the continuation of
the current regulatory environment. Foreign oil producing countries, including
members of the Organization of Petroleum Exporting Countries (OPEC) may impose
production quotas which limit the supply of oil that can be produced. Generally,
these production quotas affect the timing of production, rather than the total
volume of oil or gas reserves estimated. Changes in the regulatory
environment by host governments may impact the operating environment and oil and
gas reserves estimates of industry participants. Such regulatory changes could
include increased mandatory government participation in producing contracts,
changes in royalty terms, cancellation or amendment of contract rights, or
expropriation or nationalization of property. While the oil and gas industry is
subject to regulatory changes that could affect an industry participant153s
ability to recover its oil and gas reserves, neither we nor Hess are aware of
any such governmental actions which restrict the recovery of the December 31,
2009, estimated oil and gas volumes.

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DeGolyer and MacNaughton DeGolyer and MacNaughton is an independent
petroleum engineering consulting firm that has been providing petroleum
consulting services throughout the world for over 70 years. DeGolyer and
MacNaughton does not have any financial interest, including stock ownership, in
Hess. Our fees were not contingent on the results of our evaluation. This letter
report has been prepared at the request of Hess and should not be used for
purposes other than those for which it is intended. DeGolyer and MacNaughton has
used all procedures and methods that it considers necessary to prepare this
report.

	Submitted,
	/s/ DeGolyer and MacNaughton
	DeGOLYER and MacNAUGHTON
	Texas Registered Engineering Firm F-716
	/s/ James W. Hail, Jr, P.E.
	James W. Hail, Jr., P.E.
[SEAL]	President DeGolyer and MacNaughton

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DeGolyer and MacNaughton CERTIFICATE of QUALIFICATION
I, James W. Hail, Jr., Petroleum Engineer with DeGolyer and MacNaughton, 5001
Spring Valley Road, Suite 800 East, Dallas, Texas, 75244 U.S.A., hereby certify:

	1.		That I am the President of DeGolyer and MacNaughton, which company did prepare the letter report dated January 15, 2010 on the proved reserves audit of certain properties attributable to Hess Corporation, and that I, as President, was responsible for the preparation of this report.
	2.		That I attended the Texas A&M University, and that I graduated with a Bachelor of Science degree in Chemical Engineering in 1972; that I am a Registered Professional Engineer in the State of Texas; that I am a member of the International Society of Petroleum Engineers; the American Association of Petroleum Geologists; and the Society of Petroleum Evaluation Engineers and that I have in excess of 35 years of experience in oil and gas reservoir studies and reserves evaluations.

	/s/ James W. Hail, Jr, P.E.
	James W. Hail, Jr., P.E.
[SEAL]	President DeGolyer and MacNaughton