Hess announced that it has completed the sale of its stake in the Shenzi field in the deepwater Gulf of Mexico to BHP.

BHP, the operator of the field, has bought Hess’ entire stake of 28% in the field for a total consideration of $505m.

With the acquisition, BHP has now increased its stake in the Shenzi field to 72%, with the remaining stake of 28% owned by Spanish energy company Repsol.

Shenzi, which is a six-lease development in the deepwater Gulf of Mexico, adds approximately 11,000 barrels of oil equivalent per day of production to BHP.

Hess CEO, John Hess said, “This transaction brings value forward in the current low price environment and further strengthens our cash and liquidity position. Proceeds will be used to fund our world class investment opportunity in Guyana.”

The Shenzi facility is located approximately 195km off the Louisiana coastline and is installed in approximately 1,300 meters of water on Green Canyon block 653.

The field consists of four blocks that include Green Canyon 609, 610, 653 and 654.

In the January-August period, the oil field has produced an average of 11,000 net barrels of oil equivalent per day.

The acquisition is part of BHP’s strategy to target counter-cyclical acquisitions in high-quality producing or near producing assets.

In September, ExxonMobil and Hess have made a final investment decision (FID) on the $9bn Payara development project, offshore Guyana. The FID was taken after securing the Guyanese government’s approval.

The project involves the development of the Payara field in the Stabroek Block through the drilling of up to 41 wells at 10 drill centres.

First oil from the Payara development project is targeted for 2024.