Hess to sell enhanced oil recovery assets in Permian Basin

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Diamond Offshore Black Lion drilling on Stampede Green Canyon 468-512

Hess Corporation said on Monday it has entered into an agreement to sell its interests in enhanced oil recovery (EOR) assets in the Permian Basin to Occidental Petroleum Corporation (NYSE: OXY) for a total consideration of $600 million, effective June 1, 2017. Proceeds from the sale will be used to fund the company’s strong growth opportunities.

The transaction consists of the following Hess-operated assets: the Seminole-San Andres Unit (Hess 34.2% interest) and the Seminole Gas Processing Plant (Hess 46.6% interest) in Texas; the West Bravo Dome C02 field in New Mexico (Hess 100% interest); and a 9.9% non-operated interest in the Bravo Dome unit in New Mexico. These assets produced an average of 8,200 barrels of oil equivalent per day in 2016 net to Hess.

The agreement is subject to regulatory approvals and other customary closing conditions and is expected to close August 1, 2017.

Hess has 30% interest in the Stabroek block offshore Guyana were oil production in the Liza field is expected to begin in mid-2020.