Hess Agrees to Sell Some Assets in Permian Basin

Hess said Monday it has agreed to sell its interests in certain assets in the Permian Basin to Occidental Petroleum Corporation (OXY) for $600 million as of June 1 to finance expansion of the business.

The assets involved are enhanced oil recovery (EOR) assets and include the Seminole-San Andres Unit, with Hess holding 34.2%; the Seminole Gas Processing Plant, in which it has 46.6% interest, in Texas; the West Bravo Dome carbon dioxide field in New Mexico, in which it has a 100% interest, and a 9.9% non-operated interest in the Bravo Dome unit in New Mexico, it said on Monday. These assets produced an average of 8,200 barrels of oil equivalent per day in 2016 net to Hess, the company said in a press release. The agreement is subject to regulatory approvals and is expected to close Aug. 1.

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