Hess Corp. has inked a deal to sell its stakes in some oil-producing assets in West Texas and New Mexico for $600 million, the New York oil company said Monday.
The four so-called CO2 enhanced oil recovery assets in the Permian Basin, including active oil wells, a gas processing plant in Texas and a CO2 field in New Mexico, pumped an average 8,200 barrels of oil equivalent a day last year for Hess.
Houston's Occidental Petroleum Corp. has agreed to buy the assets in a sale expected to close in August. The deal comes on the heels of Hess'sannouncement it will join Exxon in assembling a massive deep-water project off the coast of Guyana.
Analysts at Wells Fargo said the sale could fund some 60 percent of Hess's initial share of the first phase of development in the Liza field off Guyana. That share is about $955 million. The Permian Basin assets also make up only 3 percent of Hess's total output, the analysts said.