Acquisitions & Divestitures

Hess Sells Stake in Deepwater Gulf of Mexico Field for $505 Million

Hess agreed to sell its stake in the Shenzi Field in the deepwater Gulf of Mexico to field operator BHP as it looks to deepen its investment offshore Guyana.

Emily

Patsy

HartEnergy.com

Mon, 10/05/2020 - 05:25 PM

Hess Sells Stake in Deepwater Gulf of Mexico Field for $505 Million

The acquisition will boost BHP’s stake in the Shenzi Field in the deepwater Gulf of Mexico to 72% working interest. Repsol YPF owns the remaining 28% interest. (Source: Hess Corp.)

Hess Corp. entered an agreement on Oct. 5 to sell its interests in the Shenzi Field in the deepwater Gulf of Mexico (GoM) as the New York-based independent E&P company looks to funnel proceeds to its developments offshore Guyana.

BHP Group Ltd., the field’s operator, agreed to acquire the stake from Hess comprised of a 28% working interest for $505 million. The Shenzi Field produced an average of 11,000 net boe/d in the first eight months of 2020, according to the company release.

“Proceeds will be used to fund our world-class investment opportunity in Guyana,” CEO John Hess said in a statement on Oct. 5.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.

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