Hess Corporation and Global Infrastructure Partners have launched a joint venture company which will be responsible for various Bakken midstream assets.
Hess sold a 50% interest in its Bakken midstream assets to Global Infrastructure Partners for cash consideration $2.675 billion.
Both companies will create a midstream joint venture – Hess Infrastructure Partners, which will have independent access to capital including a $400 million five year senior revolving credit facility which is fully committed.
The transaction is subject to customary closing conditions and is expected to be completed early in the third aurter of 2015.
The assets include:
– Crude oil truck and pipeline terminal in Williams County, North Dakota
– Propane storage cavern and rail and truck transloading facility in Mentor, Minnesota
– Crude oil and natural gas gathering systems in North Dakota
– A natural gas processing plant in Tioga, North Dakota
– Rail loading terminal in Tioga
The board of directors for the new joint venture will comprise six directors, with three members elected by Hess and three by Global Infrastructure Partners. Hess will retain control of the midstream assets’ operations and annual budgeting process.
Hess will operate the assets owned by the joint venture as a contract service provider.
CEO of Hess John Hess says: ‘The joint venture with its strategically located assets will be one of the largest midstream operators in the Bakken.
‘By capitalising on the financial strength and midstream energy experience of Global Infrastructure Partners, the joint venture will be in a strong position to fund future energy infrastructure investments and continue to grow its midstream business.’