Hess to swap assets with Shell, redeem notes

AP News
Posted: Dec 21, 2009 12:19 PM

Hess Corp., an oil and gas company, said Monday it has agreed to swap some assets with Shell to consolidate its portfolio and double its interest in two fields off the Norwegian coast.

Hess will take Shell's 28.09 percent interest in the Valhall field and a 25 percent interest in the Hod field off Norway.

Shell will assume Hess' 9.29 percent interest in the Clair field west of the Shetland Islands in the North Sea and all of Hess' interests in Gabon.

No cash is involved in the exchange, which is expected to be complete in the first quarter pending government approval.

Separately, Hess announced it will redeem all of its outstanding 6.65 percent notes that are due Aug. 15, 2011.

The company will redeem the notes on Jan. 20 at a price to be calculated on the third business day preceding the redemption date. It said interest on the notes will stop accruing on the redemption date.

Hess will finance the notes' redemption with the proceeds of a recently completed note offering.

Shares of Hess rose $1.09, or 1.9 percent, to $58.70 in afternoon trading.