NEW YORK — Hess Corporation has agreed to sell its interests in offshore Equatorial Guinea along the West Coast of Africa to Kosmos Energy and Trident Energy for $650 million.
“This sale is a further step in our strategy to focus our portfolio by investing in higher return assets and divesting more mature, higher cost assets,” CEO John Hess said. “Proceeds from asset sales, along with cash on our balance sheet, are expected to fund the development of our truly world class investment opportunity offshore Guyana. Our investment in Guyana will position our company to deliver a decade plus of returns-driven growth and increasing cash generation to our shareholders.”
During the first half of 2017, net production from the company’s assets in Equatorial Guinea averaged 28,000 barrels of oil per day. Hess holds an 85 percent paying interest and is operator. Tullow Oil holds a 15 percent paying interest and the Republic of Equatorial Guinea holds a 5 percent carried interest.
The sale is expected to close before year end 2017.
Under the terms of the agreements, Kosmos will be primarily responsible for exploration and subsurface evaluation while Trident Energy, a newly formed international oil and gas company supported by Warburg Pincus, will be primarily responsible for production operations and optimization.