BHP sells stake in deepwater Gulf of Mexico field to EnVen

Australia’s BHP has completed a transaction with EnVen Energy Ventures to transfer its 35 per cent ownership interest and operatorship of the Neptune field in the deepwater Gulf of Mexico.

Neptune is structured as a joint venture and is operated by BHP (35 per cent) with co-owners EnVen Energy Ventures (30 per cent), W&T Energy (20 per cent), and 31 Offshore (15 per cent).

BHP said on Saturday it would continue to operate Neptune under contract as part of the transition agreement until the transfer of both operatorship and ownership are approved by the regulator.

BHP President Petroleum Operations, Geraldine Slattery, said: “As a reputable operator with deepwater experience in the Gulf of Mexico, EnVen is ideally-placed to take operatorship of Neptune and we’re committed to a safe and smooth transition of operations.

“We’re proud of the safety performance, high uptime and operational excellence we’ve achieved over the last ten years as operator of Neptune.

“This divestment enables BHP to further reshape our portfolio in line with our long-term strategy. The Gulf of Mexico remains a heartland for BHP and we continue to look for opportunities to grow and further develop our business in the region”.

The Neptune field is located in the deepwater, central Gulf of Mexico approximately 120 miles from the Louisiana coast.

The Neptune Tension Leg Platform (TLP) was installed in 4,250 feet (1,300 metres) of water on Green Canyon Block 613. The field development includes subsea wells tied back to the TLP.

The Neptune field comprises five blocks: Atwater Valley 573, 574, 575, 617 and 618 where water depths range from 4,200 to 6,500 feet (1,275 to 2,000 metres).

BHP is also the operator of the Shenzi field in the Gulf of Mexico. The company late last year entered into a deal with Hess to boost its Shenzi interest.

The deal was completed in November 2020 after which BHP’s stake in the field increased from 44 per cent to 72 per cent.