Hess, BHP Complete $505M Shenzi Field Transaction

Shenzi - Credit: Hess Corp.
Shenzi - Credit: Hess Corp.

U.S. oil firm Hess has completed the sale of its interest in the U.S. Gulf of Mexico Shenzi deepwater oil field to BHP for $505 million.

The deal, announced in October, sees BHP taking over Hess' 28 percent stake in the six-lease development in the U.S. Gulf.

The acquisition brings BHP's interest to 72 percent and will add around 11,000 barrels of oil equivalent per day of production, of which 90 percent is oil. Spanish oil company Repsol holds the remaining 28 percent stake.

John Hess, CEO of Hess, said the transaction "brings value forward in the current low price environment and further strengthens our cash and liquidity position."

He said the proceeds of the sale would be used to "fund our world-class investment opportunity in Guyana," where the company is a partner in the prolific Stabroek offshore block, operated by ExxonMobil.

 

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