Bakken producer Hess sells assets in Norway, Equatorial Guinea

By Luke Geiver | October 24, 2017

Hess Corp. is serious about focusing on the global exploration and production company’s highest return assets. A day after announcing the sale of its interests in Equatorial Guinea to Kosmos Energy and Trident Energy for $650 million, Hess has announced plans to sell its oil and gas interests in Norway for roughly $2 billion. In addition to the sale of its subsidiary Hess Norge, the company also said it will move to sell its interests in Denmark.

John Hess, CEO, said the company is now focusing its portfolio on higher return assets and working to reduce its breakeven oil price. Money from the sale of the Hess Norge assets and the Equatorial Guinea assets will be used to fund the company’s development of offshore Guyana assets. “Proceeds from these asset sales, along with cash on the balance sheet, will prefund development of our world class investment opportunity in offshore Guyana,” Hess said, “where we have participated in one of the world’s largest oil discoveries of the past decade—positioning our company to deliver more than a decade of cash generative growth and a significant value to our shareholders.”

In addition to the recent Norway and Equatorial Guinea sales, Hess has also moved in the past year to sell other assets. In Texas, Hess sold enhanced oil recovery assets in the Permian Basin.

A portion of the proceeds from the sale will be used to pay down roughly $500 million worth of debt in 2018, the company also said.

In the U.S., Hess is mainly focused on the Bakken shale and the Gulf of Mexico with a small presence in the Utica shale play. Following the asset sales, Hess will be present in Guyana, Suriname, Ghana, Malaysia and Libya.