Hess Sells Indonesia Oil, Gas Asset to Saka Energi

Hess Corp has completed the previously announced sale of its Pangkah asset to a subsidiary of Saka Energi Indonesia, which exercised its pre-emption rights, for $650 million.

The transaction comprises sale of equity interests in certain holding entities and certain intercompany debts, Hess said.

The asset, located off the coast of Indonesia, produced an average of 9,000 barrels of oil equivalent per day net to Hess in the first three quarters of 2013, the company said.

Hess signed the Pangkah PSC with the Indonesian government in 1996 to explore an area about 19 miles offshore East Java.

Pangkah began producing gas in 2007, supplying power-generation needs in the region. Oil production began in late 2008.

Hess announced in December 2013 that it had agreed to sell its interest in the Pangkah asset to Pertamina and PTT Exploration and Production Company Limited.

This sale was pre-empted by Saka Energi Indonesia, Hess said.

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