Hess Sells Stake in Shenzi Development to BHP
Hess Corp. sold its stake in the Shenzi development to BHP for $505 million to help pay its share of the cost of developing discoveries offshore Guyana.
The purchase allows BHP to add 11,000 BOED of production—90% oil—and increase its stake in the Gulf of Mexico field by 28% to 72%.
For Hess, it is an opportunity to raise money to develop discoveries where the potential reserves and the cost are both reaching epic proportions.
The number of discoveries on the Stabroek Block, which is operated by ExxonMobil, has reached 18, increasing the potential of the huge block of the South American country with an estimated 8 billion bbl of recoverable resource.
By 2026, the partners expect to be producing 750,000 B/D. Hess’ net share of development costs is forecast to be approximately $250 million in 2021, $450 million in 2022, $500 million in 2023, $300 million in 2024, and $225 million in 2025.