Divestment Part of Strategy to Focus Portfolio on Higher Return
NEW YORK--(BUSINESS WIRE)--Oct. 23, 2017--
Hess Corporation (NYSE:HES) announced today that it has entered into an
agreement to sell its interests in offshore Equatorial Guinea to Kosmos
Energy (NYSE/LSE: KOS) and Trident Energy for a total consideration of
$650 million, effective January 1, 2017.
“This sale is a further step in our strategy to focus our portfolio by
investing in higher return assets and divesting more mature, higher cost
assets,” CEO John Hess said. “Proceeds from asset sales, along with cash
on our balance sheet, are expected to fund the development of our truly
world class investment opportunity offshore Guyana. Our investment in
Guyana will position our company to deliver a decade plus of
returns-driven growth and increasing cash generation to our
During the first half of 2017, net production from the company’s assets
in Equatorial Guinea averaged 28,000 barrels of oil per day. Hess holds
an 85 percent paying interest and is operator. Tullow Oil holds a 15
percent paying interest and the Republic of Equatorial Guinea holds a 5
percent carried interest.
The sale is expected to close before year end 2017.
Hess Corporation is a leading global independent energy company engaged
in the exploration and production of crude oil and natural gas. More
information on Hess Corporation is available at http://www.hess.com.
This news release contains projections and other forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. These
projections and statements reflect the company’s current views with
respect to future events and financial performance. No assurances can be
given, however, that these events will occur or that these projections
will be achieved, and actual results could differ materially from those
projected as a result of certain risk factors. A discussion of these
risk factors is included in the company’s periodic reports filed with
the Securities and Exchange Commission.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171023006461/en/
Source: Hess Corporation
Jay Wilson, (212) 536-8940
Hecker, (212) 536-8250