• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 48 mins So Is COVID a Media Hoax or Not?
  • 35 mins Joe Biden's Presidency
  • 30 mins Biden suspends oil and gas drilling on Federal Lands for 60 days for review.
  • 3 hours JACK MA versus Xi Jinping
  • 9 hours GENERAL NORMAN SCHWARZKOPF: The Third Tour
  • 26 mins Parler’s New Partner Has Ties to the Russian Government
  • 1 min a In 2020, we produced and delivered half a million cars.
  • 7 hours Thanks to food countersanctiona after 2014 Russia become net exporter of food
  • 11 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 2 hours The Debate Starts : Remake Republican Party vs. Third Party
  • 2 hours Deceptions Revealed about the “Nord Stream 2 Pipeline” and Germany
  • 137 days Wind, Solar & Gas in California. How's that working out for you?
  • 21 hours Navalny Poisoning Weakens Russo German Relations

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