BHP to Acquire Bigger Stake in Gulf of Mexico Oil and Gas Development
By Mike Cherney
SYDNEY--BHP Group Ltd. said it would acquire an additional 28%
interest in the Shenzi oil and gas development in the Gulf of
Mexico from Hess Corp. for US$505 million.
The acquisition brings BHP's interest in the development to 72%
and adds approximately 11,000 barrels of oil equivalent per day of
production, said BHP, which operates the development. The other 28%
is owned by Repsol SA.
"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," said Geraldine Slattery, BHP's president of petroleum
BHP said it believes that the fundamentals for oil and gas will
be attractve for the next decade and likely beyond. It said that
there's potential for price upside in the coming years given the
recent slowdown in development activity.
BHP said the effective date of the transaction is July 1, 2020,
with an expected close by December.
Write to Mike Cherney at email@example.com
(END) Dow Jones Newswires
October 05, 2020 17:58 ET (21:58 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.