Named Hess Infrastructure Partners (HIP), the JV owns and operates Hess’s crude oil and natural gas assets primarily in the Bakken Shale.
The assets include a natural gas processing plant, rail loading terminal and associated rail cars, crude oil truck and pipeline terminal, and crude oil and natural gas gathering systems in North Dakota.
Propane storage cavern and rail and truck trans-loading facility in Minnesota will also be managed by the JV.
Hess will serve as operator of the JV-owned assets.
The $5.35bn JV is expected to have a debt of around $600m.
Hess CEO John Hess said: "The JV with its strategically located assets will be one of the largest midstream operators in the Bakken.
"By capitalizing on the financial strength and midstream energy experience of GIP, the JV will be in a strong position to fund future energy infrastructure investments and continue to grow its midstream business."
The transaction proceeds will be used by Hess to strengthen its balance sheet, fund future growth opportunities, and continue to repurchase stock.
Subject to customary closing conditions, the transaction is expected to be completed in the third quarter.
Image: Hess’ crude oil and natural gas assets are located in the Bakken Shale. Photo: courtesy of Hess Corporation.
