Hess selling Russia business to Lukoil for $1.8B

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Associated Press

Posted on April 1, 2013 at 10:00 AM

Updated Monday, Apr 1 at 10:02 AM

NEW YORK (AP) — Hess Corp. is selling its Russian oil production business to Lukoil for $1.8 billion as it continues to sell off assets.

Hess says it agreed to sell the Samara-Nafta division to OAO Lukoil, the second-largest oil company in Russia. Samara-Nafta produces 50,000 barrels of oil a day in the Volga-Urals region.

Hess has announced or closed a series of sales in 2013. Including the Samara-Nafta sale, it expects $3.4 billion in proceeds from those deals.

In March Hess announced plans to sell its retail gas stations business, along with its energy trading and marketing businesses, as it shifts its focus further toward exploration and production. It also intends to sell U.S. oil storage terminals and will close a New Jersey refinery as it exits the volatile refining business.

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