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Shell Will Buy Hess Stake in Field Off Scottish Coast

May 30 (Bloomberg) -- Royal Dutch Shell Plc will buy Hess Corp.’s 15.67 percent stake in the Schiehallion oil field and associated equipment, making it the largest holder of the project off the Scottish coast.

The deal is expected to close this year after it gets regulatory approval, New York-based Hess said in a statement today. Terms of the sale, which includes a stake in a floating production, storage and offloading vessel and the West of Shetland pipeline system, weren’t disclosed.

“Selling these non-operated, non-core assets will help us sustain the profitable growth of our production and reserves,” Greg Hill, president of Hess worldwide exploration and production, said in the statement.

After the sale, The Hague-based Shell will own 49.1 percent of the project 175 kilometers (109 miles) west of the Scottish coast, according to Jon Pepper, a spokesman for Hess. BP Plc owns 36.3 percent of Schiehallion and operates it. Statoil ASA, OMV AG and Murphy Oil Corp. are also partners in the project.

Hess fell 4.3 percent to $45.38 at the close in New York. The shares have declined 20 percent this year.

To contact the reporter on this story: Benjamin Haas in New York at bhaas7@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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