Israel's Navitas Petroleum LP said July 28 The Blackstone Group LP signed a preliminary deal to raise its stake in a drilling project in the Gulf of Mexico to 47% from 16%.
Navitas had partnered with U.S. oil firm LLOG Exploration Co. LLC and Blackstone's portfolio company Beacon Offshore Energy LLC in drilling at the Shenandoah discovery that holds 431 million barrels of oil. Blackstone, through Beacon, is buying LLOG's 31% holding in the $250 million project while Navitas would continue to hold 53%, Navitas said.
It noted that the project is expected to generate $1.13 billion in cash flow for the company. Production is forecast to begin in 2024.
The group recently signed a deal for drilling rig with Transocean Ltd.
"Blackstone's and Beacon's capabilities will help complete the project's financing and rapid and successful development," Navitas Chairman Gideon Tadmor said.
Recommended Reading
E&P Highlights: Feb. 10, 2025
2025-02-10 - Here’s a roundup of the latest E&P headlines, from a Beetaloo well stimulated in Australia to new oil production in China.
TGS Awarded Two More Streamer Contracts Offshore Norway
2025-02-10 - Data and intelligence TGS provider now has six contracts scheduled on the Norwegian Continental Shelf.
US Drillers Add Oil, Gas Rigs for Second Week in a Row, Baker Hughes Says
2025-02-07 - Despite this week's rig increase, Baker Hughes said the total count 6% below this time last year.
PotlatchDeltic Enters Lithium, Bromine Lease Agreement in Arkansas
2025-02-06 - PotlatchDeltic’s agreement with gives Tetra Brine Leaseco covers about 900 surface acres in Lafayette County, PotlatchDeltic says.
McDermott Completes Project Offshore East Malaysia Ahead of Schedule
2025-02-05 - McDermott International replaced a gas lift riser and installed new equipment in water depth of 1,400 m for Thailand national oil company PTTEP.