Hess Corp. has entered into two separate agreements with a joint venture between PT Pertamina and PTT Exploration and Production Co. Ltd. to sell its interests in both the Pangkah and Natuna A assets located off the coast of Indonesia for a total after-tax consideration of $1.3 billion. 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.
Hess will use the proceeds from this sale to continue repurchasing shares under its existing $4 billion authorization. The agreements are expected to close before the end of the first quarter of 2014.
In April, Hess disclosed plans to divest its exploration and production assets in Indonesia and Thailand, as well as its remaining downstream businesses, including terminals, retail, marketing, and trading divisions. Also in April, Hess closed its sale of Russian subsidiary Samara-Nafta to OAO Lukoil for $2.05 billion. Through that month, Hess had 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.
Additionally, Hess entered into an agreement with Buckeye Partners LP in October to sell its US East Coast and St. Lucia terminal network for $850 million. At that point, Hess had divested $5.4 billion this year to repay debt and strengthen its balance sheet. A month later, the company completed the sale of its energy marketing business to Centrica PLC subsidiary Direct Energy for $1.2 billion.