“This sale is a further step in our strategy to focus our portfolio by investing in higher return assets and divesting more mature, higher cost assets,” CEO John Hess said.
“Proceeds from asset sales, along with cash on our balance sheet, are expected to fund the development of our truly world class investment opportunity offshore Guyana. Our investment in Guyana will position our company to deliver a decade plus of returns-driven growth and increasing cash generation to our shareholders.”
During the first half of 2017, net production from the company’s assets in Equatorial Guinea averaged 28,000 barrels of oil per day. Hess holds an 85 percent paying interest and is operator. Tullow Oil holds a 15 percent paying interest and the Republic of Equatorial Guinea holds a 5 percent carried interest.
The sale is expected to close before year end 2017.
According to media reports, the deal comes as Hess and the government ministry reached a $220M settlement on tax issues related to its interest in the two fields.
Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas.