Hess Sells Stake In 3 Caspian Sea Fields

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Sold its interest in Azeri, Chirag and Gunshli fields of the Caspian Sea and an associated pipeline.

Hess Corp. (NYSE: HES) has closed on its sale of its interest in the Azeri, Chirag and Gunshli Fields of the Caspian Sea and an associated pipeline to ONGC Videsh Ltd. (NYSE: ONGC) for about $1 billion.

After adjusting for the Jan. 1 effective date of the sale, the after-tax proceeds to Hess are about $884 million. ONGC Videsh is controlled by the government of India, but has publicly traded shares.

Hess held 2.72% interest in the fields and a 2.36% in the associated BTC pipeline. The BP-operated ACG fields, located in the Caspian Sea approximately 100 kilometers east of Baku, commenced production in 1997.

“This sale is another step in the execution of our strategy to become a more focused, higher growth, lower risk pure play exploration and production company,” said John B. Hess, Chairman and CEO. “Consistent with our announcement on March 4, the after tax net proceeds from this sale will be used to pay down an equivalent amount of short term debt.”