BHP Bhp Group Limited

TIDMBHP

RNS Number : 1635B

BHP Group PLC

05 October 2020

NEWS RELEASE

 
Release Time     IMMEDIATE 
Date             6 October 2020 
Release Number   16/20 
 
 

BHP to acquire an additional 28 per cent working interest in Shenzi from Hess

BHP today announced that it has signed a Membership Interest Purchase and Sale Agreement with Hess Corporation (Hess) to acquire an additional 28 per cent working interest in Shenzi, a six-lease development in the deepwater Gulf of Mexico. Shenzi is structured as a joint ownership: BHP (Operator, 44 per cent interest); Hess (28 per cent interest) and Repsol S.A. (28 per cent interest).

BHP and Hess have agreed to a purchase price of US$505 million, subject to customary pre and post-closing adjustments.

The acquisition would bring BHP's working interest to 72 per cent and immediately add approximately 11,000 barrels of oil equivalent per day of production (90 per cent oil).

This transaction is consistent with our strategy of targeting counter-cyclical acquisitions in high-quality producing or near producing assets. While our strict Capital Allocation Framework tests ensure all investments are resilient to low points in the commodity cycle, we also recognise the potential for price upside over the medium term given the global slowdown in development activity, and we are well positioned to participate in that upside. We continue to believe that the fundamentals for oil and advantaged gas will be attractive for the next decade and likely beyond.

BHP President Petroleum Operations, Geraldine Slattery said: "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."

The effective date of the transaction is 1 July 2020 with an expected close by December 2020, subject to the satisfaction or waiver of customary and transaction-specific conditions.

Further information on BHP can be found at: bhp.com

 
 
 
  Authorised for lodgement by: 
  Caroline Cox 
  Group General Counsel & Company Secretary 
Media Relations                                Investor Relations 
 
 Email: media.relations@bhp.com                Email: investor.relations@bhp.com 
 
Australia and Asia                             Australia and Asia 
 
 Gabrielle Notley                               Tara Dines 
 Tel: +61 3 9609 3830 Mobile:                   Tel: +61 3 9609 2222 Mobile: 
 +61 411 071 715                                + 61 499 249 005 
 
 Europe, Middle East and Africa                 Europe, Middle East and Africa 
 
 Neil Burrows                                   Elisa Morniroli 
 Tel: +44 20 7802 7484 Mobile:                  Tel: +44 20 7802 7611 Mobile: 
 +44 7786 661 683                               +44 7825 926 646 
 
 Americas                                       Americas 
 
 Judy Dane                                      Brian Massey 
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BHP Group Limited ABN 49 004                   BHP Group plc Registration 
 028 077                                        number 3196209 
 LEI WZE1WSENV6JSZFK0JC28                       LEI 549300C116EOWV835768 
 Registered in Australia                        Registered in England and Wales 
 Registered Office: Level 18,                   Registered Office: Nova South, 
 171 Collins Street                             160 Victoria Street 
 Melbourne Victoria 3000 Australia              London SW1E 5LB United Kingdom 
 Tel +61 1300 55 4757 Fax +61                   Tel +44 20 7802 4000 Fax +44 
 3 9609 3015                                    20 7802 4111 
 
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October 06, 2020 02:00 ET (06:00 GMT)

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