U.S. Markets closed

Hess sells Russian subsidiary for $2.05 billion

NEW YORK (AP) -- Oil company Hess Corp. said on Friday that it has completed the sale of its Russian subsidiary Samara-Nafta for $2.05 billion.

The sale to OAO Lukoil is part of a larger reshaping of its assets. It said it expects to have raised $3.5 billion from finished and planned asset sales so far this year. It's using the money to pay down short-term debt and improve its balance sheet, "providing the financial flexibility for future growth," the company said.

Hess said it is also looking into selling its exploration and production assets in Indonesia and Thailand, as well as its remaining terminals, retail, energy marketing and trading operations. It said most of the money from those additional sales would be returned to shareholders. It expects to repurchase shares under its current $4 billion buyback plan in the second half of this year.

Hess shares fell 15 cents to $71.01 in afternoon trading. Its shares are trading near the high end of their 52-week range of $39.67 to $74.48.