Hess Corp. has entered into an agreement to sell its 28% working interest in the Shenzi field in the deepwater Gulf of Mexico to BHP for $505 million.
(Courtesy BHP)
The Shenzi TLP is about 120 mi (195 km) offshore Louisiana and installed in approximately 4,300 ft (1,310 m) of water on Green Canyon block 653. Production began in 2009.
Offshore staff
NEW YORK – Hess Corp. has entered into an agreement to sell its 28% working interest in the Shenzi field in the deepwater Gulf of Mexico to BHP.
The companies have agreed to a purchase price of $505 million, subject to customary pre and post-closing adjustments.
Shenzi produced an average of 11,000 net boe/d in the first eight months of 2020.
“Proceeds will be used to fund our world class investment opportunity in Guyana,” CEO John Hess said. “This sale is aligned with our strategy to preserve cash and preserve the long-term value of our assets in the current low oil price environment.”
The transaction is expected to close before year the end of the year and is subject to customary closing conditions.
Upon closing, BHP raises its operated interest to 72%. Repsol S.A. holds the remaining 28%.
