Hess Reaches Agreement for Sale of UK Assets

abarrelfullabarrelfull wrote on 30 May 2012 19:13
Tags: europe hess north-sea shell uk upstream


Hess Corporation (NYSE: HES) today announced it had reached agreement with Royal Dutch Shell to sell its 15.67 percent interest in the BP-operated Schiehallion field, its associated share in the Schiehallion Floating, Production, Storage and Offloading vessel (FPSO) and the West of Shetland pipeline system. The sale is subject to regulatory approval and is expected to complete later this year.

The Schiehallion field is located in blocks 204 and 205, approximately 175 kilometres west of the Shetland Islands, off the Scottish coast. Hess has been a partner in the project since it was sanctioned by the UK Government in 1996. The FPSO has been in service since production began in 1998. Construction of a new FPSO is underway and is expected to start production in 2016.

Greg Hill, President, Worldwide Exploration & Production said, “This sale is part of our company’s portfolio management and optimization. Selling these non-operated, non-core assets will help us sustain the profitable growth of our production and reserves."


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