Hess Corp. completed the sale of 100% of its Russian subsidiary Samara-Nafta to OAO Lukoil for a total consideration of US $2.05 billion, the company said in a press release. Including working capital and other adjustments, total after-tax proceeds to Hess based on its 90% interest in Samara-Nafta were approximately $1.9 billion.
Hess’ total year-to-date proceeds from completed and announced asset sales amount to approximately $3.5 billion. As previously announced, the company is applying these proceeds to repay outstanding short-term debt and strengthen its balance sheet, providing the financial flexibility to fund future growth, according to the press release.
The company also is currently engaged in separate processes to divest its E&P assets in Indonesia and Thailand, as well as its remaining downstream businesses, including terminals, retail, energy marketing, and trading. Most of the proceeds from these additional sales will be used to return capital directly to shareholders, according to the press release. Hess anticipates that it will begin to repurchase shares under its existing $4 billion authorization in the second half of this year.
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