BHP (ASX:BHP) in $701 million Shenzi deal

Company News

by Rachael Jones

BHP (ASX:BHP) has signed 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).

Shares in BHP (ASX:BHP) are trading 0.3 per cent lower at $36.05.