Hess’s Australian subsidiary, Hess Exploration Australia Pty Ltd. and the North West Shelf (NWS) signed a non-binding letter of intent (LOI) for Hess to develop its natural gas discoveries in its deepwater permits offshore northwestern Australia.
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Image from Hess. |
Subject to execution of binding agreements Hess wants to toll the production through existing NWS processing and liquefaction facilities in Karratha, Australia. Hess would then market liquefied natural gas (LNG) to customers in Asia Pacific.
Hess holds 100% interests in both the WA-390-P and WA-474-P permits that contain the Equus fields. These permits cover over 1 million acres and are located approximately 115 mi. off the northwest coast of Australia in water depths of approximately 3600ft. An Equus sanction decision is not expected before 2017.
Hess and NWS plan to conduct joint engineering studies and further progress commercial discussions.
“This arrangement would bring together Hess’ strong deepwater drilling and development capabilities with NWS’s proven track record in natural gas processing and liquefaction,” says Greg Hill, Hess president and COO. “The combination provides an attractive option for Hess to commercialize its important Equus natural gas resource in a manner that delivers secure, reliable energy supplies intoAsia Pacific LNG markets and creates value for our shareholders.”
NWS is a joint venture between BHP Billiton Petroleum (North West Shelf) Pty Ltd, BP Developments Australia Pty Ltd, Chevron Australia Pty Ltd, Japan Australia LNG (MIMI) Pty Ltd, Shell Australia Pty Ltd and Woodside Energy Ltd (Operator).
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