Hess continues 'strategic reshaping'

Nov. 13, 2012 at 6:27 AM
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NEW YORK, Nov. 13 (UPI) -- U.S. energy company Hess Corp. announced it was considering selling a Russian subsidiary that produces about 50,000 barrels a day of oil equivalent.

Hess, in a statement, said it retained financial company Goldman Sachs to serve as its adviser for the potential sale of Russian subsidiary Samara-Nafta, which produces 50,000 boe per day from the Volga-Urals region.

Hess described the move as a "strategic reshaping" initiative.

Greg Hill, president of global exploration and production for Hess, used similar phrasing when describing the October sale of its Beryl area fields on the British continental shelf to Shell for $525 million.

The region includes 12 fields that Hess said yielded around 14,000 barrels of oil equivalent per day for the first nine months of the year.

Shell said the area may continue producing for the next 20 years and the acquisition should increase Shell's regional production by as much as 24,000 boe per day.

Hess stated a financial gain during its third-quarter earnings report.

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