Hess to sell Indonesian assets for $1.3 billion

Hess Corp. entered into two separate agreements with a joint venture of PT Pertamina and PTT Exploration & Production Co. Ltd. to sell its interests in the Pangkah and Natuna A assets offshore Indonesia for $1.3 billion. The agreements are expected to close before the end of first-quarter 2014.

In this year’s first three quarters, the assets produced a combined 15,000 boe/d net to Hess. The company is a partner with Kuwait Foreign Petroleum Exploration in Pangkah.

The company will use the sale's proceeds to continue repurchasing shares under its existing $4 billion authorization.

Earlier this year Hess disclosed plans to divest its exploration and production assets in Indonesia and Thailand as well as its remaining downstream businesses, including terminals, retail, marketing, and trading divisions (OGJ Online, Apr. 30, 2013).

Also in April Hess closed its sale of Russian subsidiary Samara-Nafta to OAO Lukoil for a $2.05 billion (OGJ Online, Apr. 1, 2013). Through that month, Hess had reported or completed the sale of interests in Beryl field in the UK North Sea, the Eagle Ford play in Texas, and the Azeri, Chirag, and Guneshli fields in Azerbaijan and the associated pipeline (OGJ Online, Mar. 18, 2013).

Hess in October entered into an agreement with Buckeye Partners LP to sell its US East Coast and St. Lucia terminal network for $850 million. At that point, Hess had divested $5.4 billion this year to repay debt and strengthen its balance sheet (OGJ Online, Oct. 9, 2013).

A month later, the company completed the sale of its energy marketing business to Centrica PLC subsidiary Direct Energy for $1.2 billion (OGJ Online, Nov. 1, 2013).

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