S&P: Amerada Hess unaffected

Standard & Poor's said Tuesday that Amerada Hess Corp.'s (BBB-/negative/A-3) announcement that it achieved initial production from the Llano field on April 30 will not affect the ratings or outlook on the company.

The timing and magnitude of the production were in line with S&P's expectations and incorporated into the current rating.

S&P said Amerada Hess faces considerable challenges in the intermediate term to bring onstream several significant oilfield developments that should allow the company to reverse the material production declines it has experienced in recent years. Rating stability depends on the company gaining government approval for development of its Northern Block G field offshore Equatorial Guinea during 2004 and initiation of marketed production from the Joint Development Area of Thailand/Malaysia during 2005.

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