Helix Energy Solutions Secures Production, P&A Work With Thunder Hawk Buy
The company will produce twilight barrels and conduct abandonment work when the field is deemed uncommercial.
Helix Energy Solutions Group subsidiary Deepwater Abandonment Alternatives (DAA) acquired all of MP GOM’s 62.5% interest in Mississippi Canyon Block 734, comprising three wells and related subsea infrastructure, collectively known as the Thunder Hawk field. MP GOM is a subsidiary of Murphy Oil. Financial terms of the deal were not disclosed.
“This acquisition furthers Helix’s energy transition business model by taking on decommissioning obligations in exchange for production revenues,” said Owen Kratz, president and chief executive of Helix. “We have long communicated our unique position as a qualified offshore field operator that can also assume and efficiently discharge decommissioning obligations. We continue to pursue opportunities that enable us to enhance and extend the life of existing reserves and safely perform the related decommissioning of the infrastructure in transactions that allow producers to remove noncore assets from their balance sheets.”
Under the terms of the transaction, Helix receives the benefit of ownership of MP GOM’s interest, with a 1 November 2021 effective date purchase price adjustment resulting in nominal cash paid by MP GOM at closing, in exchange for the assumption of MP GOM’s abandonment obligations at the Thunder Hawk Field.
In addition to anticipated future production revenue, DAA will operate the Thunder Hawk field with Helix eventually expected to perform the required plug and abandonment operations.