• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 12 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 1 hour Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 6 hours As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 46 mins The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 10 hours Middle East on brink: Oil tankers attacked off Oman
  • 4 hours Never Knew Gasoline Prices were this important!
  • 1 hour Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 3 hours (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
  • 20 hours Emmissions up, renewables nowhere
  • 20 hours Britain makes it almost 12 days with NO COAL
  • 21 hours Only one country is contemplating destroying its own resource sector: Canada
  • 21 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 2 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 4 hours We Are Better Than This

Hess Corp to Sell Russian Assets to Lukoil for $2.05 Billion

Investors pushing for a change in the setup of the oil and gas company Hess Corp (NYSE: HES), have finally got their way as the New York based energy company made an announcement to sell its Russian unit, Samara Nafta, for $2.05 billion.

In efforts to reshape and refocus its sprawling business Hess will sell its 90% stake in Samara Nafta to Lukoil, Russia’s second largest crude oil producer.

Lukoil is interested in purchasing oil assets as part of its long term strategy to halt falling output. Production has been in steady decline over the past three years due to rapidly depleting wells in West Siberia, and disappointing output from new drill sites in the Timan-Pechora region in northern Russia.

Related article: TNK-BP Billionaires Seek New Oil & Gas Prowess

Samara-Nefta, from its operations in the Volga-Urals region of Russia currently produces around 50,000 barrels of oil equivalent a day, and has a reported 85 million tonnes of oil in proven reserves. Hess expects its 90% stake to fetch about $1.8 billion after tax.

In line with its streamlining plans, Hess has also announced the sale of assets in the North Sea, Texas, and Azerbaijan, hoping to net about $3.4 billion after tax. Chief Executive John Hess, stated that the plan is to use most of the proceeds to return capital to the shareholders.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News