Hess Corporation has wrapped up the previously announced $505 million sale of its 28% stake in the Shenzi Field in the deepwater Gulf of Mexico to BHP, the field’s operator.

Located 120 miles from the Louisiana coast, the Shenzi oil and gas field has been in production since 2009.

John Hess – Hess CEO said: “This transaction brings value forward in the current low price environment and further strengthens our cash and liquidity position.

“Proceeds will be used to fund our world class investment opportunity in Guyana.”

As per the deal signed last month, BHP has increased its stake in the Shenzi oil and gas field to 72%. The only other stakeholder in the Shenzi Field following the exit of Hess is Repsol, a Spanish oil and gas company, which holds the remaining 28% stake.

The deal adds nearly 11,000 barrels of oil equivalent per day of production to BHP, of which 90% is oil.

The Shenzi Field platform in the US deep-water Gulf of Mexico. Photo courtesy of Hess Corporation.

  Oil and gas industry news