Australian oil and gas company, BHP, has acquired an additional 28% working interest in the Shenzi formation for $505 million from Hess Corporation, according to a press release.

The transaction will mean that BHP’s working interest will increase from 44% to 72%, adding approximately 11,000 barrels of oil equivalent per day (boe/d) of production as of the transaction closing date of November 6. It is expected that 90% of the hydrocarbons produced will be oil.

Total petroleum production guidance for the 2021 financial year of between 95 and 102 million barrels of oil equivalent (mmboe) will be adjusted accordingly to accommodate the increase in production.  

Shenzi is a six-lease development in the deepwater Gulf of Mexico and is jointly owned by BHP (72% interest) and Repsol S.A. (28% interest).