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
Exclusive: TES CEO Sees Electric Natural Gas as a Trillion Dollar Market
2024-03-26 - Marco Alverà, the co-founder and CEO of TES, details how electric natural gas from green hydrogen is a cheaper and easier to produce fuel and shares insight on its e-NG partnership with TotalEnergies, in this Hart Energy Exclusive.
Schneider Electric’s Heather Cykoski: Infused AI is Everywhere
2024-04-09 - Schneider Electric puts sensors in the technology it provides customers, creating the ability to gather data, predict operations and drive efficiency.
Exclusive: ChampionX Innovation Needed to Drill the Incremental Barrel
2024-05-14 - Soma Somasundaram, president and CEO of ChampionX, emphasized the need to innovate when drilling for the incremental barrel, as well as the oilfield services sector’s role in the path to net zero.
‘Growth Story’ for Oil: Rice's Kenneth Medlock on Demand Trends
2024-03-05 - Economics drive oil demand, not politics, Rice University’s Kenneth Medlock said during the International Drilling Conference and Exhibition in Galveston.
CERAWeek: Saudi Aramco CEO Says No Peak in Oil Demand for Some Time to Come
2024-03-18 - Reducing greenhouse gas emissions from hydrocarbons through carbon capture and other technologies achieves better results than alternative energies, Saudi Aramco CEO Amin Nasser said.