Tags: Lukoil. Hess | Russia | gas

Hess to Sell Russian Unit to Lukoil for $2.05 Billion

Monday, 01 Apr 2013 11:38 AM

Hess Corp, which has been besieged by activist investors pushing for change at the oil and gas company, said it would sell its Russian unit to Lukoil for $2.05 billion as it works to reshape its sprawling energy business.

Hess owns 90 percent of the unit, called Samara-Nafta, and expects its after tax proceeds will be about $1.8 billion. Samara-Nafta is currently producing 50,000 barrels of oil equivalent per day in the Volga-Urals region of Russia, the company said.

Hedge fund Elliott Management, which owns 4.39 percent of Hess' shares, has been clamoring for change at Hess since January, when it launched a campaign to seat five new directors on the board and pitched a plan to break up the company.

Hess has since announced plans to exit its retail gasoline, marketing and trading businesses, and assembled its own slate of six new directors for its board.

Chief Executive John Hess said in a statement that the company plans to use most of the future proceeds from the rest of its current asset sale program to return capital to shareholders.

Shares of Hess rose $1.72, or 2.4 percent, to $73.33 in morning trading on the New York Stock Exchange. 

© 2017 Thomson/Reuters. All rights reserved.

 
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Hess Corp., which has been besieged by activist investors pushing for change at the oil and gas company, said it would sell its Russian unit to Lukoil for $2.05 billion as it works to reshape its sprawling energy business.
Lukoil. Hess,Russia,gas
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2013-38-01
Monday, 01 Apr 2013 11:38 AM
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