Hess Corporation has reached agreement with Shell for a strategic asset trade that will double Hess' interest in a pair of Norwegian offshore fields, Valhall and Hod, to 56.18 percent and 50 percent, respectively.

In the trade, Hess will assume Shell's 28.09 percent interest in the Valhall field and 25 percent interest in the satellite Hod field. In return, Shell will assume Hess' 9.29 percent interest in the Clair field (UK North Sea) and all of Hess' interests in Gabon, including production fields Rabi Kounga (Hess 10%), Atora (Hess 40%) and Toucan (Hess 50%), and the Ozigo exploration permit.

No cash is involved in the trade, which is expected to be completed in the first quarter of 2010 subject to government approvals and other required consents.

Greg Hill, President of Worldwide Exploration and Production, said, "This strategic trade provides us with an opportunity to consolidate our portfolio and double our interest in Valhall/Hod, a long-lived producing asset with significant reserves and potential, which will further support our long term objective of profitably increasing our reserves and production. We look forward to continue working with BP, the field operator, to deliver this future growth."

Tags: Hess Corporation, Shell