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Hess sells Indonesian assets for $1.3 billion

Dec. 2, 2013 at 9:43 AM   |   Comments

NEW YORK, Dec. 2 (UPI) -- U.S. energy company Hess Corp. said Monday it was selling its interests in Indonesia to its counterparts there for $1.3 billion.

Hess Corp., which has headquarters in New York City, said it entered into two separate agreements to sell its interests in the Pangkah and Natuna A assets off the Indonesian coast for $1.3 billion. The assets go to a joint venture controlled by Indonesian energy companies PT Pertamina and PTT Exploration and Production Co. Ltd.

"Together, the two assets produced an average of 15,000 barrels of oil equivalent per day net to Hess in the first three quarters of 2013," the company said in a statement.

PTT Exploration and Production Chief Executive Officer Somkiet Janmaha said the acquisition fits in with his company's growth strategy.

"The acquisition of Pangkah and Natuna Sea A is a strategic fit to PTTEP's growth strategy of adding producing assets that contribute immediate revenue stream, accretion of volume growth and reserves, and enhance our position in Southeast Asia," he said in a separate statement.

Hess said it would use the proceeds to finance the purchase of its own shares. Hess announced plans for the regional divestment in April.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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