Gassi El Agreb, Algeria  Tubular Bells, Gulf of Mexico 11 Amerada Hess made a new discovery on Block 401c (AHC 60%), in Algeria. An extensive seismic program is underway, with more drilling scheduled for the second half of 2004. Development of the giant Azeri, Chirag and Guneshli fields (AHC 2.72%), in Azerbaijan, is  on schedule. Net production is currently 2,000  barrels of oil equivalent per day, and is expected to increase to over 25,000 barrels per day by 2009. In northeastern Thailand, a successful appraisal well was drilled on Phu Horm Block E5N (AHC 35%). A flow test was completed with a stabilized gas rate of 31.5 million cubic feet per day. Additional appraisal drilling is planned in 2004. In Equatorial Guinea, the results of an extended appraisal drilling program are being incorporated into the development plan for the Northern Block G discoveries (AHC 85%). It is anticipated that the development plan will be submitted for govern- ment approval in the second quarter of 2004. In the Norwegian North Sea, enhanced recovery from the Valhall Field (AHC 28.09%) has begun with flank development wells coming onstream in 2003 and water injection commencing in the first quarter of 2004. The Snohvit project (AHC 3.26%), in the Barents Sea offshore Norway, will be EuropeGLYPH<213>s first LNG export facility when gas production and lique- faction begin by 2006. In the United Kingdom, first production from  the Clair Field (AHC 9.29%) is expected in 2005 and from the Atlantic (AHC 25%) and Cromarty (AHC 90%) gas fields in 2006. Combined net  production from these three fields is expected  to exceed 25,000 barrels of oil equivalent per  day in 2006. Exploration is a key component of future growth. Amerada Hess has a strong position in the deep- water Gulf of Mexico, with leasehold interests in 291 blocks and over 4,000 blocks of 3D seismic coverage. In 2003, two key discoveries were made in this area: EXPLORATION ¥ Successful appraisal drilling was conducted at the 2002 Shenzi discovery (AHC 28%), on Green Canyon Block 654. The Shenzi-2 well, located in 4,238 feet of water, encountered about 500 feet of net pay. Further appraisal drilling is planned  in 2004. ¥ The Tubular Bells discovery well (AHC 20%) in Mississippi Canyon Block 725, located in 4,300 feet of water, was drilled to a depth of 31,131 feet. The well encountered 190 feet of net oil pay. Further appraisal drilling is planned in late 2004. 