BHP Divests Neptune Stake in Deepwater Gulf of Mexico

BHP announced Friday it has sold its 35 percent stake and will turn over the operation of the Neptune oil and gas field in the deepwater Gulf of Mexico to Houston-based EnVen Energy Ventures.

 BHP has operated the Neptune field since 2002 and currently co-owns it with partners EnVen, owning a 30 percent, and W&T Energy VI and 31 Offshore owning the remaining 20 and 15 percent, respectively.

As part of the agreement, BHP will continue to operate Neptune under contract during a transition period until transfer of both operatorship and ownership are approved by regulators.

“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,” said BHP President Petroleum Operations, Geraldine Slattery. “We’re proud of the safety performance, high uptime and operational excellence we’ve achieved over the last ten years as operator of Neptune.”

Neptune is one of two fields BHP has operated in the Green Canyon area of U.S. Gulf of Mexico off the coast of Louisiana, the other being Shenzi field. The Neptune tension leg platform, installed in 4,250 feet of water, began production at the field in 2008. BHP also holds non-operating interest stakes in the Atlantis and Mad Dog fields.

“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,” Slattery said.

BHP did not disclose the financial terms of the agreement.

With the deal, EnVen takes over as operator of Neptune with 65% stake.

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