Hess Announces Sale of Its Interest in Russia
Hess Corporation announced today it has entered into an agreement with
OAO LUKOIL to sell 100 percent of its Russian subsidiary Samara-Nafta
for a total consideration of $2.05 billion. Based on its 90 percent
interest in Samara-Nafta, total after tax proceeds to Hess are expected
to amount to approximately $1.8 billion. Samara-Nafta is currently
producing 50,000 barrels of oil equivalent per day in the Volga-Urals
region of Russia.
So far in 2013, Hess has announced or completed the sale of its
interests in the Beryl field in the U.K. North Sea, the Eagle Ford play
in Texas, and the Azeri, Chirag and Guneshli fields in Azerbaijan and
the associated pipeline. Including Samara-Nafta, the total after tax
proceeds from these sales will amount to approximately $3.4 billion.
John B. Hess, Chairman and CEO, said, 'As the sale of Samara-Nafta
indicates, we are making excellent progress in executing our asset sales
program, which is a central component of our plan to transform Hess into
a more focused, higher growth, lower risk pure play exploration and
production company. Just as important, by applying the proceeds from
these divestitures to reduce debt and strengthen our balance sheet, Hess
will have the financial flexibility both to fund its future growth and
also to direct most of the proceeds from additional asset sales to
returning capital directly to its shareholders.?
Closing of the sale of Samara-Nafta is subject to the customary approval
process of the Federal Antimonopoly Service of the Russian Federation.
Application for this approval process is expected to be filed within the
next week.
Hess Corporation is a leading global independent energy company
primarily engaged in the exploration and production of crude oil and
natural gas. More information on Hess Corporation is available at http://www.hess.com.
Cautionary Statements
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.
Hess Corporation
Investor:
Jay Wilson, 212-536-8940
or
Media:
Jon
Pepper, 212-536-8550
