Hess Corp. recently completed the multimillion-dollar sale of its interests in the Shenzi Field in the deepwater Gulf of Mexico (GoM) to BHP Group Plc.

BHP, the operator of the Shenzi Field, had agreed in early October to the acquisition of Hess’ 28% working interest in the  offshore oil field for $505 million. The Shenzi Field produced an average of 11,000 net boe/d (90% oil) in the first eight months of 2020.

John Hess, CEO of the New York-based independent E&P company, said proceeds from the Shenzi Field sale will be used to fund its development offshore Guyana, which has been a key part of growth plans for Hess. The company has said it would prioritize spending offshore Guyana as it looks to pull back elsewhere due to low oil prices.

“This transaction brings value forward in the current low price environment and further strengthens our cash and liquidity position,” Hess said in a statement on Nov. 6.

The Shenzi Field is located in the U.S. GoM, 120 miles off the Louisiana coast, in the deepwater Green Canyon area. The field was discovered in 2002 and achieved first oil in 2009.

Following close of the transaction, BHP will own 72% working interest in the Shenzi Field. Repsol YPF owns the remaining 28% interest.

Latham & Watkins LLP advised Hess in the transaction with a corporate deal team led by Houston partner Robin Fredrickson. The transaction has an effective date of July 1.