Hess to sell US East Coast terminal network

US-based energy company Hess has signed an agreement with Buckeye Partners to sell 20 East Coast and St Lucia liquid petroleum product terminals for approximately $850m in cash.

The terminal network holds the total storage capacity of around 39 million barrels. The transaction is expected to be completed in the fourth quarter of 2013.

With this deal, Hess’ total year-to-date divestitures have reached approximately $5.4bn, which includes sale of four upstream producing assets.

Hess plans to use the proceeds from this transaction to retain its retail business by releasing approximately $900m, along with another $100m.

The company also plans to use the proceeds to purchase shares under its $4bn authorisation.

In February, the company shut down its Port Reading refinery, which produces around 70,000 barrels per day, and also placed its trading arm Hetco up for sale.

Hess has around 1,360 branded filling stations in 16 states along the East Coast of the US.

The company has engaged in the exploration and production of crude oil and natural gas in the US, UK, Norway, Denmark, Russia, Equatorial Guinea, Algeria, Libya, Gabon, Egypt and Ghana.

It also operates in the joint development area of Malaysia and Thailand, Indonesia, Thailand, Azerbaijan, Australia and Brazil.