Lukoil to buy Hess's Russian subsidiary for US$2 billion

OAO Lukoil has signed an agreement with New York-based Hess Corp. to acquire 100% of Hess’s Russian subsidiary, Samara-Nafta, for $2.05 billion. Hess previously had said it was considering selling its Russian interests.

Based on its 90% interest in Samara-Nafta, total aftertax proceeds to Hess are expected to be $1.8 billion. Samara-Nafta is currently producing 50,000 boe/d in Russia’s Volga-Urals region.

So far this year, Hess has reported or completed the sale of interests in Beryl field in the UK North Sea, the Eagle Ford play in Texas, and the Azeri, Chirag, and Guneshli fields in Azerbaijan, and the associated pipeline. Including Samara-Nafta, the total aftertax proceeds from these sales will amount to about $3.4 billion.

John B. Hess, chairman and CEO, said, “As the sale of Samara-Nafta indicates, we are making excellent progress in executing our asset sales program, which is a central component of our plan to transform Hess into a more focused, higher growth, lower risk pure play exploration and production company.”

Closing of the sale is subject to the customary approval process of the Federal Antimonopoly Service of the Russian Federation.

Related Articles

McClendon’s new company raises $2.9 billion

02/21/2014 Former Chesapeake CEO Aubrey McClendon’s new oil and gas venture, American Energy Partners, has been raising some $2.9 billion from investors in a bid to acquire and drill acreage in Ohio’s souther...

Upstream News

02/01/2014

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 Pangkah asset in Indonesia

01/10/2014

Hess Corp. has completed the sale of its Pangkah asset to a subsidiary of PT Saka Energi Indonesia, which exercised its preemption rights, for a total after tax consideration of $650 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...

More Oil & Gas Financial Articles

McClendon’s new company raises $2.9 billion

Fri, Feb 21, 2014

Former Chesapeake CEO Aubrey McClendon’s new oil and gas venture, American Energy Partners, has been raising some $2.9 billion from investors in a bid to acquire and drill acreage in Ohio’s southern Utica shale play.

Upstream News

Sat, Feb 1, 2014

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 Pangkah asset in Indonesia

Fri, Jan 10, 2014

Hess Corp. has completed the sale of its Pangkah asset to a subsidiary of PT Saka Energi Indonesia, which exercised its preemption rights, for a total after tax consideration of $650 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.

Most Popular

Oil & Gas Jobs

Search More Job Listings >>
Subscribe to OGFJ