Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
BHP (NYSE: BHP) announced Friday that it has completed the transaction to acquire an additional 28% working interest in Shenzi from Hess Corporation for $505 million.
The deepwater Shenzi oil and gas field lies in the Gulf of Mexico and holds estimated recoverable reserves of between 350 million and 400 million barrels of oil equivalent, although additional potential reserves will be targeted for follow-up development, Offshore Technology reported.
The transaction brings BHP’s working interest to 72% and adds approximately 11,000 barrels of oil equivalent per day of production (90% oil) as of the transaction closing date of November 6.
Total petroleum production guidance for the 2021 financial year of between 95 and 102 MMboe will be updated at the second quarter Operational Review, released January 20, 2021, to reflect the additional production from Shenzi and other operational updates such as Gulf of Mexico hurricane impacts, BHP said in a media release.
Shenzi is a six-lease development and is structured as joint ownership; BHP has a 72% interest and Repsol S.A. has 28% interest.
