6th Oct 2020 06:25
(Alliance News) - Anglo-Australian miner BHP Group PLC said it will acquire an additional 28% interest in Shenzi, a six-lease development in the deepwater Gulf of Mexico from US petroleum refineries firm Hess Corp for USD505 million.
Shenzi is currently structured as a joint ownership, with BHP holding a 44% stake as operator, while Hess and Repsol SA hold a 28% interest each.
The acquisition will increase BHP's working interest to 72% and add 11,000 barrels of oil equivalent per day in production. Of this output, 90% of it is oil.
"This transaction aligns with our plans to enhance our petroleum portfolio by targeted acquisitions in high quality producing deepwater assets and the continued de-risking of our growth options. We are purchasing the stake in Shenzi at an attractive price, it's a tier one asset with optionality, and key to BHP's Gulf of Mexico heartland. As the operator, we have more opportunity to grow Shenzi high-margin barrels and value with an increased working interest," said Geraldine Slattery, president of Petroleum Operations.
Shares in BHP Group were marginally higher at AUD36.16 on Tuesday in Sydney.
By Dayo Laniyan; [email protected]
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