GIP-backed midstream company buys water services business 

12 December 2018 - 12:00 am UTC

Hess Infrastructure Partners (HIP) entered a memorandum of understanding (MoU) to acquire the existing Bakken water services business of its co-owner Hess Corporation for USD 225m in cash.

Hess Infrastructure Partners is a midstream joint venture between publicly-traded Hess Corporation and Global Infrastructure Partners. The acquiring entity was HIP’s Hess Midstream Partners unit.

The scope of the water services business includes all of Hess’ Bakken-produced water gathering assets and saltwater disposal services in North Dakota. The assets comprise over 150 miles of existing Hess water gathering pipelines, which capture about 24,000 barrels per day of produced water.

Under the terms of MoU, Hess Midstream will have a right of first offer to acquire the water services business in the event that Hess Infrastructure Partners decides to sell the water services business in the future.

The parties expect to close the transaction in 1Q19.

Global Infrastructure Partners II acquired its stake in Hess Infrastructure Partners in 2015 for USD 2.675bn, according to Inframation Deals.

 

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