Hess Sells Share in ACG Fields to ONGC Videsh

Hess Corporation announced it has completed the sale of its 2.72 percent interest in the Azeri, Chirag and Guneshli Fields (ACG) and its 2.36 percent interest in the associated BTC pipeline to ONGC Videsh Ltd. for $1 billion.

Adjusting for net cash flow received since the Jan. 1, 2012 effective date of sale, after tax net proceeds are $884 million.

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.”

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LNG World News Staff, April 01, 2013