•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    Hess to pursue sale of terminal network and exit refining business

    Hess Corp. announced Jan. 28 that it will pursue the sale of its terminal network in the US and also complete its exit from the refining business by closing its Port Reading, New Jersey, refinery.

    The terminal network is located along the US East Coast and has a total of 28 million barrels of storage capacity in 19 terminals, 12 of which have deepwater access. The terminals previously served as the primary outlet for Hess’ share of production from its HOVENSA joint venture refinery, most of which was used to supply Hess’ retail and energy-marketing businesses.

    With the closure of the HOVENSA refinery in 2012, along with Hess’ ability to access refined products from third parties to supply these marketing businesses, the terminal system is no longer core to the company’s operations. The company’s St. Lucia oil storage terminal in the Caribbean, with 10 million barrels of capacity, will also be included in the package for divestiture.

    In addition to the proceeds from the sale of the terminal network, the transaction should also release approximately $1 billion of working capital for redeployment to fund Hess’ future growth opportunities.

    The Port Reading refinery, which will be closed by the end of February, comprises solely a fluid catalytic cracking unit, and it primarily manufactures gasoline and components used for blending heating oil. The refinery incurred losses in two of the past three years. The financial outlook for the facility is expected to remain challenged due to the requirement for future expenditures to comply with environmental regulations for low-sulfur heating oil and the weak forecast for gasoline refining margins.

    “By closing the Port Reading refinery and selling our terminal network, Hess will complete its transformation from an integrated oil and gas company to one that is predominantly an exploration and production company, and will be able to redeploy substantial additional capital to fund its future growth opportunities,” said John Hess, the company’s chairman and CEO.

    Hess has retained Goldman, Sachs & Company as its financial advisor for the divestiture of the terminal network.

    Hess Corporation is a  global independent energy company primarily engaged in the exploration and production of crude oil and natural gas, and the marketing of refined petroleum products, natural gas and electricity.

    Related Articles

    Hess appoints Checki to board of directors

    03/12/2014

    Hess Corp.’s board of directors will appoint Terrence J. Checki, a Management Committee member at the Federal Reserve Bank of New York, to the company’s board of directors, effective May 1.

    American Energy Partners acquires dry gas Utica acreage

    02/03/2014 American Energy Partners LP, the oil and gas company founded by former Chesapeake Energy co-founder Aubrey McClendon, has acquired 130,000 net acres in the southern portion of the Utica Shale ...

    Hess sells Utica dry gas acreage for $924M

    01/29/2014 Hess Corp. (NYSE: HES) has entered into an agreement to sell approximately 74,000 acres of its dry gas acreage in the Utica Shale to an undisclosed third party for a consideration of $924 million.

    Hess completes sale of Natuna A asset in Indonesia

    12/10/2013 Hess Corp. has completed the previously announced sale of its Natuna A asset, located off the coast of Indonesia, to PT Pertamina and PTT Exploration and Production Co. Ltd. for a total after-tax c...

    PVR Partners to provide services for Hess in Utica shale

    09/04/2013 PVR Partners LP has entered into a definitive agreement with Hess Corp. to construct, own and operate a 45-mile natural gas trunkline and associated gathering pipelines and facilities servicing Hes...

    More Oil & Gas Financial Articles

    Hess appoints Checki to board of directors

    Wed, Mar 12, 2014

    Hess Corp.’s board of directors will appoint Terrence J. Checki, a Management Committee member at the Federal Reserve Bank of New York, to the company’s board of directors, effective May 1.

    American Energy Partners acquires dry gas Utica acreage

    Mon, Feb 3, 2014

    American Energy Partners LP, the oil and gas company founded by former Chesapeake Energy co-founder Aubrey McClendon, has acquired 130,000 net acres in the southern portion of the Utica Shale from affiliates of Hess, Exxon Mobil, and privately-held Paloma Partners, reported analysts at Global Hunter Securities (GHS).

    Hess sells Utica dry gas acreage for $924M

    Wed, Jan 29, 2014

    Hess Corp. (NYSE: HES) has entered into an agreement to sell approximately 74,000 acres of its dry gas acreage in the Utica Shale to an undisclosed third party for a consideration of $924 million.

    Hess completes sale of Natuna A asset in Indonesia

    Tue, Dec 10, 2013

    Hess Corp. has completed the previously announced sale of its Natuna A asset, located off the coast of Indonesia, to PT Pertamina and PTT Exploration and Production Co. Ltd. for a total after-tax consideration of $650 million.

    PVR Partners to provide services for Hess in Utica shale

    Wed, Sep 4, 2013

    PVR Partners LP has entered into a definitive agreement with Hess Corp. to construct, own and operate a 45-mile natural gas trunkline and associated gathering pipelines and facilities servicing Hess's lean gas production in the Utica shale play in eastern Ohio.

    Most Popular

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ