Hess Corp. (HES) agreed to sell its Indonesian interests for $1.3 billion in cash to fund its share-repurchase program, the latest in the company's plan to shed assets.
The oil and gas company is selling its Pangkah and Natuna A assets--which produced a combined 15,000 barrels of oil a day in the first three quarters of this year--to Indonesian oil companies PT Pertamina (Persero) and PTT Exploration & Production Co.
Hess said it will use the proceeds to repurchase shares under its existing $4 billion share-buyback program.
The sale marks the latest in Hess's plan to shed assets as it struggles with lackluster profits and shareholder discontent. In October, the company reported its third-quarter earnings slid on lower revenue and production.
So far this year, the company has sold its stake in a Russian unit for $1.8 billion to OAO Lukoil (LUKOY, LKOH.RS), its energy-marketing business to Direct Energy, Centrica PLC (CPYYY, CNA.LN) for $1.03 billion, and its East Coast and St. Lucia terminal network to Buckeye Partners L.P. (BPL) for $850 million.
Hess expects its latest deal to close before the end of the first quarter.
Hess's shares closed Friday at $81.13, up 64% in the past 12 months.
Write to Everdeen Mason at email@example.com
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(END) Dow Jones Newswires
December 02, 2013 08:35 ET (13:35 GMT)Copyright (c) 2013 Dow Jones & Company, Inc.
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