Hess Corp. (NYSE:HES) agreed to sell a minority interest in an offshore oil field off the Scottish Coast to Royal Dutch Shell (NYSE: RDS.A) for an undisclosed sum, as part of its plan to focus on the development of shale-gas properties in the U.S.
The New York-based oil producer and refiner will sell its 15.67 percent stake in the Schiehallion field, which is operated by BP Plc (NYSE: BP). The field is located in blocks 204 and 205, off the Scottish coast. Hess has been a partner in the project since 1996.
The company said the sale of these non-operated, non-core assets will help sustain the profitable growth of its production and reserves.
Hess will also divest its associated share in the Schiehallion Floating, Production, Storage and Offloading vessel (FPSO) and the West of Shetland pipeline system.
The vessel has been in service since 1998, while construction of a new vessel is underway and is expected to start production in 2016.
The sale is expected to close later this year.
Last month, Hess reported a 41 percent drop in first-quarter earnings as gains from asset sales boosted results in the year-ago period.
On Wednesday, the stock lost 3.94 percent to trade at $45.55. Over the past year, shares have been trading in the range of $44.10 to $80.05. Providing quality reviews, articles and writings on crude oil, energy and gas online.
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