Helix Energy Solutions Group Inc. (NYSE: HLX) has acquired from Marathon Oil Corp. (NYSE: MRO) certain operating depths associated with the Droshky Prospect on Green Canyon Block 244, along with related infrastructure.
As part of the transaction, Helix will perform the required plug and abandonment operations for which Marathon Oil will pay certain agreed upon amounts.
“This transaction represents the first instance of executing our strategy to secure utilization for our assets in non-traditional ways during this continuing challenging market period. We may see some production revenues from the acquired property; however, the principal driver for this transaction is asset utilization,” Owen Kratz, president and CEO of Helix, said.
The rollback effort made by the administration of former President Donald Trump was among a string of eleventh-hour proposals aimed at maximizing energy development on public lands and waters.
The BLM auction on Aug. 27 of 93 land parcels covering more than 45,000 acres in New Mexico plus one parcel in Texas attracted far less interest from oil and gas drillers than recent sales in the region.
In New Mexico and Colorado, politicians balance environmental policies with the need for oil and gas revenues.