Israel's Navitas Petroleum LP said July 28 The Blackstone Group LP signed a preliminary deal to raise its stake in a drilling project in the Gulf of Mexico to 47% from 16%.
Navitas had partnered with U.S. oil firm LLOG Exploration Co. LLC and Blackstone's portfolio company Beacon Offshore Energy LLC in drilling at the Shenandoah discovery that holds 431 million barrels of oil. Blackstone, through Beacon, is buying LLOG's 31% holding in the $250 million project while Navitas would continue to hold 53%, Navitas said.
It noted that the project is expected to generate $1.13 billion in cash flow for the company. Production is forecast to begin in 2024.
The group recently signed a deal for drilling rig with Transocean Ltd.
"Blackstone's and Beacon's capabilities will help complete the project's financing and rapid and successful development," Navitas Chairman Gideon Tadmor said.
Recommended Reading
WTI Delivered to East Houston Hits Highest Premium in Nearly Three Years
2024-05-01 - Oil takeaway capacity from the Permian Basin will tighten next month due to scheduled pipeline maintenance.
Bakshani: Midstream Exhibiting M&A Fever Symptoms
2024-05-20 - East Daley Analytics identified several market factors in the midstream sector that point to further consolidation ahead.
Permian NatGas Hits 15-month Low as Negative Prices Linger
2024-04-16 - Prices at the Waha Hub in West Texas closed at negative $2.99/MMBtu on April 15, its lowest since December 2022.
Midstream Builds in a Bearish Market
2024-03-11 - Midstream companies are sticking to long term plans for an expanded customer base, despite low gas prices, high storage levels and an uncertain political LNG future.
Segrist: The LNG Pause and a Big, Dumb Question
2024-04-25 - In trying to understand the White House’s decision to pause LNG export permits and wondering if it’s just a red herring, one big, dumb question must be asked.