## Table 0 ##
(a) Results of operations for oil and gas producing activities in Norway were as follows for the years ended December 31:
## Table 1 ##
(b) Excludes a 2012 income tax charge of $86 million for a disputed application of an international tax treaty.
Oil and Gas Reserves The Corporation’s proved oil and gas reserves are calculated in accordance with the Securities and Exchange Commission (SEC) regulations and the requirements of the Financial Accounting Standards Board.
Proved oil and gas reserves are quantities, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from known reservoirs under existing economic conditions, operating methods and government regulations.
The Corporation’s estimation of net recoverable quantities of liquid hydrocarbons and natural gas is a highly technical process performed by internal teams of geoscience professionals and reservoir engineers.
Estimates of reserves were prepared by the use of appropriate geologic, petroleum engineering, and evaluation principals and techniques that are in accordance with practices generally recognized by the petroleum industry as presented in the publication of the Society of Petroleum Engineers entitled “Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information (Revision as of February 19, 2007).
” The method or combination of methods used in the analysis of each reservoir is based on the maturity of the reservoir, the completeness of the subsurface data available at the time of the estimate, the stage of reservoir development and the production history.
Where applicable, reliable technologies may be used in reserve estimation, as defined in the SEC regulations.
These technologies, including computational methods, must have been field tested and demonstrated to provide reasonably certain results with consistency and repeatability in the formation being evaluated or in an analogous formation.
In order for reserves to be classified as proved, any required government approvals must be obtained and depending on the cost of the project, either senior management or the board of directors must commit to fund the development.
The Corporation’s proved reserves are subject to certain risks and uncertainties, which are discussed in Item 1A, Risk Factors Related to Our Business and Operations of this Form 10-K.
by net repayments of other debt of $53 million.
During 2011, net proceeds from borrowings on available credit facilities were $422 million.
During 2010, net proceeds from borrowings were $1,098 million, including the August 2010 issuance of $1,250 million of 30-year fixed-rate public notes with a coupon of 5.6% scheduled to mature in 2041.
In January 2010, the Corporation completed the repurchase of the remaining $116 million of fixed-rate public notes that were scheduled to mature in 2011.
Total common stock dividends paid were $171 million in 2012, $136 million in 2011 and $131 million in 2010.
In 2012, the Corporation made five quarterly common stock dividend payments as a result of accelerating payment of the fourth quarter 2012 dividend, which historically would have been paid in the first quarter of 2013.
The Corporation received net proceeds from the exercise of stock options, including related income tax benefits of $11 million, $88 million and $54 million in 2012, 2011 and 2010, respectively.
Future Capital Requirements and Resources The Corporation anticipates investing a total of approximately $6.8 billion in capital and exploratory expenditures during 2013, substantially all of which is targeted for E&P operations.
This reflects an 18 percent reduction from the 2012 total of $8.3 billion.
The decrease is substantially attributable to a reduced level of spend in the Bakken driven by lower drilling and completion costs and decreased investments in infrastructure projects.
During 2012, the Corporation funded its capital spending through cash flows from operations, incremental borrowings and proceeds from asset sales.
The Corporation had a cash flow deficit of approximately $2.5 billion in 2012 and the projected deficit for 2013 is expected to moderate versus 2012 based on current commodity prices.
During 2012, the Corporation announced asset sales totaling $2.4 billion, of which cash proceeds of $843 million were received in 2012 and approximately $440 million were received in January 2013.
The Corporation is also pursuing the sale of its Russian operations, Eagle Ford assets and its terminal network.
The Corporation expects to fund its 2013 capital expenditures and ongoing operations, including dividends, pension contributions and debt repayments with existing cash on-hand, cash flows from operations and proceeds from asset sales.
Crude oil and natural gas prices are volatile and difficult to predict.
In addition, unplanned increases in the Corporation’s capital expenditure program could occur.
If conditions were to change, such as a significant decrease in commodity prices or an unexpected increase in capital expenditures, the Corporation would take steps to protect its financial flexibility and may pursue other sources of liquidity, including the issuance of debt securities, the issuance of equity securities, and/or further asset sales.
See Overview on page 20 for a discussion of Elliott Management Corporation.
The table below summarizes the capacity, usage, and available capacity of the Corporation’s borrowing and letter of credit facilities at December 31, 2012:
## Table 2 ##
(a) Total capacity of $1 billion subject to the amount of eligible receivables posted as collateral.
(b) Committed and uncommitted lines have expiration dates through 2014.
The Corporation has a $4 billion syndicated revolving credit facility that matures in April 2016.
This facility can be used for borrowings and letters of credit.
Borrowings on the facility bear interest at 1.25% above the London Interbank Offered Rate.
A fee of 0.25% per annum is also payable on the amount of the facility.
The interest rate and facility fee are subject to adjustment if the Corporation’s credit rating changes.
The Corporation has a 364-day asset-backed credit facility secured by certain accounts receivable from its M&R operations.
Under the terms of this financing arrangement, the Corporation has the ability to borrow or issue letters of credit of up to $1 billion subject to the availability of sufficient levels of eligible receivables.
At December 31, 2012, outstanding borrowings under this facility of $600 million were collateralized by a total of
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 2010: In December, the Corporation acquired approximately 167,000 net acres in the Bakken oil shale play (Bakken) in North Dakota from TRZ Energy, LLC for $1,075 million in cash.
In December, the Corporation also completed the acquisition of American Oil & Gas Inc.  (American Oil & Gas) for approximately $675 million through the issuance of approximately 8.6 million shares of the Corporation’s common stock, which increased the Corporation’s acreage position in the Bakken by approximately 85,000 net acres.
The properties acquired were located near the Corporation’s existing acreage.
These acquisitions strengthened the Corporation’s acreage position in the Bakken, leveraged existing capabilities and infrastructure and are expected to contribute to future reserve and production growth.
Both of these transactions were accounted for as business combinations and the majority of the fair value of the assets acquired was assigned to unproved properties.
The total goodwill recorded on these transactions was $332 million after final post-closing adjustments.
In September, the Corporation completed the exchange of its interests in Gabon and the Clair Field in the United Kingdom for additional interests of 28% and 25%, respectively, in the Valhall and Hod fields offshore Norway.
This non-monetary exchange was accounted for as a business combination.
The transaction resulted in a pre-tax gain of $1,150 million ($1,072 million after income taxes).
The total combined carrying amount of the disposed assets prior to the exchange was $702 million, including goodwill of $65 million.
The Corporation also acquired, from a different third party, additional interests of 8% and 13% in the Valhall and Hod fields, respectively, for $507 million in cash.
This acquisition was accounted for as a business combination.
As a result of both of these transactions, the Corporation’s total interests in the Valhall and Hod fields are 64% and 63%, respectively.
The primary reason for these transactions was to acquire long-lived crude oil reserves and future production growth.
For all the 2010 acquisitions and the exchange described above, the assets acquired and liabilities assumed were recorded at fair value.
The estimated fair value for property, plant and equipment acquired in these transactions was based primarily on an income approach (Level 3 fair value measurement).4.
Inventories Inventories at December 31 were as follows:
## Table 3 ##
The percentage of LIFO inventory to total crude oil, refined petroleum products and natural gas inventories was 71% and 72% at December 31, 2012 and 2011, respectively.
During 2012 the Corporation reduced LIFO inventories, which are carried at lower costs than current inventory costs.
The effect of the LIFO inventory liquidations was to decrease Cost of products sold by approximately $165 million in 2012 ($104 million after income taxes).5.
HOVENSA L. L. C.  Joint Venture The Corporation has a 50% interest in HOVENSA, a joint venture with a subsidiary of Petroleos de Venezuela, S. A.
(PDVSA), which owns a refinery in St.  Croix, U. S.  Virgin Islands.
In January 2012, HOVENSA shut down its refinery as a result of continued substantial operating losses due to global economic conditions and competitive disadvantages versus other refiners, despite efforts to improve operating performance by reducing refining capacity to 350,000 from 500,000 barrels per day in the first half of 2011.
During 2012 and continuing into 2013, HOVENSA and the Government of the Virgin Islands engaged in discussions pertaining to HOVENSA’s plan to run the facility as an oil storage terminal while the Corporation and its joint venture partner pursue a sale of HOVENSA.
Table of Contents VALERO ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Cash Flow Hedges Cash flow hedges are used to hedge price volatility in certain forecasted feedstock and refined product purchases, refined product sales, and natural gas purchases.
The objective of our cash flow hedges is to lock in the price of forecasted feedstock, product or natural gas purchases or refined product sales at existing market prices that we deem favorable.
As of December 31, 2011, we had the following outstanding commodity derivative instruments that were entered into to hedge forecasted purchases or sales of crude oil and refined products.
The information presents the notional volume of outstanding contracts by type of instrument and year of maturity (volumes in thousands of barrels).

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For the Years Ended December 31	Total	United States	Europe (a)	Africa	Asia and Other (b)
(In millions)
2010
Sales and other operating revenues
Unaffiliated customers	$8,601	$2,310	$2,251	$2,750	$1,290
Inter-company	143	143	—	—	—
Total revenues	8,744	2,453	2,251	2,750	1,290
Costs and expenses
Production expenses, including related taxes	1,924	489	727	455	253
Exploration expenses, including dry holes and lease impairment	865	364	49	143	309
General, administrative and other expenses	281	161	48	20	52
Depreciation, depletion and amortization	2,222	649	463	772	338
Asset impairments	532	—	—	532	—
Total costs and expenses	5,824	1,663	1,287	1,922	952
Results of operations before income taxes	2,920	790	964	828	338
Provision for income taxes	1,425	305	477	580	63
Results of operations	$1,495	$485	$487	$248	$275

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2012	2011	2010
(In millions)
Sales and other operating revenues—Unaffiliated customers	$518	$996	$524
Costs and expenses
Production expenses, including related taxes	302	290	149
Exploration expenses, including dry holes and lease impairment	—	10	12
General, administrative and other expenses	10	9	9
Depreciation, depletion and amortization	139	232	133
Total costs and expenses	451	541	303
Results of operations before income taxes	67	455	221
Provision for income taxes	-82	295	154
Results of operations	$149	$160	$67

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Expiration Date	Capacity	Borrowings	Letters of Credit Issued	Total Used	Available Capacity
(In millions)
Revolving credit facility	April 2016	$4,000	$758	$—	$758	$3,242
Asset-backed credit facility	July 2013 (a)	642	600	—	600	42
Committed lines	Various (b)	2,730	500	463	963	1,767
Uncommitted lines	Various (b)	773	490	283	773	—
Total	$8,145	$2,348	$746	$3,094	$5,051

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2012	2011
(In millions)
Crude oil and other charge stocks	$493	$451
Refined petroleum products and natural gas	1,362	1,762
Less: LIFO adjustment	-1,123	-1,276
732	937
Merchandise, materials and supplies	527	486
Total inventories	$1,259	$1,423

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Question: Does the average value of total revenues in United State greater than that in Europe (a)?
Answer: yes