Bakken Midstream Joint Venture

6 Months Ended

Jun. 30, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Bakken Midstream Joint Venture

6.  Bakken Midstream Joint Venture

On July 1, 2015, we sold a 50% interest in Hess Infrastructure Partners LP (HIP) to Global Infrastructure Partners  for net cash consideration of approximately $2.6 billion.  HIP and its affiliates primarily comprise our Bakken Midstream operating segment which provides fee-based services including crude oil and natural gas gathering, processing of natural gas and the fractionation of natural gas liquids, terminaling and loading crude oil and natural gas liquids, transportation of crude oil by rail car and the storage and terminaling of propane, primarily located in the Bakken shale play of North Dakota.

We consolidate the activities of HIP, which qualifies as a variable interest entity under U.S. GAAP.  At June 30, 2016, HIP liabilities totaling $789 million (December 31, 2015: $824 million) are on a nonrecourse basis to Hess Corporation, which includes total long-term debt of $684 million (December 31, 2015: $704 million).  At June 30, 2016, HIP assets available to settle its obligations include Cash and cash equivalents totaling $1 million (December 31, 2015: $3 million) and Property, plant and equipment with a carrying value of $2,444 million (December 31, 2015: $2,358 million).