Hess to partner with Global Infrastructure Partners
USA
NEW YORK CITY, June 11, 2015 – US integrated oil company Hess Corporation is set to divest half of its Bakken midstream assets to US private equity firm Global Infrastructure Partners. The sale will cost the company $2.68 billion and create a master limited partnership between the two businesses valued at $5.35 billion.
The partnership will then file for an initial public offering in the third quarter of 2015.
Assets to be included in the joint venture are a natural gas processing plant, a crude oil truck, a pipeline terminal and a rail-loading terminal in North Dakota.
Hess will retain control of all asset operations and predicts that net income for the partnership will reach $155 million for the year ending in March 2016. Capital expenditures could go up to $350 million.
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