Hess Corp. said Friday that it is selling its stake in the Azeri, Chirag and Guneshli Fields in Azerbaijan and an associated pipeline to Indian petroleum company ONGC Videsh Ltd. for $1 billion.
Hess has a 2.72 percent interest in the fields located in the Caspian Sea and operated by BP. The fields have been producing since 1997. Hess has a 2.36 percent interest in the pipeline associated with the fields.
The deal is expected to close in the first quarter of next year.
“The sale of our interest in ACG is consistent with our strategy to divest mature and small working interest assets,” Greg Hill, president of Worldwide Exploration and Production for Hess, said in a statement.
Hess has announced sales of assets totaling nearly $2 billion this year, including this deal. The company said other asset sales are under way as the company tries to reshape its portfolio.
Hess shares rose $2.23, or 4.4 percent, to $53.05 in afternoon trading.
