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Energy Giants Eye Major US Gulf Stake
3 Apr
Summary
- TotalEnergies and Shell are eyeing a majority stake in the Shenandoah field.
- Beacon Offshore Energy and HEQ Deepwater are selling their stakes.
- Shenandoah began production in July, reaching 100,000 barrels daily.
European energy giants TotalEnergies and Shell are reportedly considering a bid for a majority stake in the U.S. Gulf's Shenandoah offshore field. This interest is heightened by the ongoing Middle East conflict, which is increasing the appeal of North American energy prospects. London-listed BP and Spain's Repsol have also expressed interest, alongside potential bids from Chevron.
The sale process for the Shenandoah field was initiated by its current owners, Beacon Offshore Energy and HEQ Deepwater, who are offering a combined 51% stake. Navitas Petroleum holds the remaining interest. Initial bids are anticipated in the coming weeks, with other major Middle Eastern and Asian energy producers also potentially entering the process.
Shenandoah is an ultra-deepwater field located approximately 30,000 feet deep. Despite the technical challenges associated with such exploration, it is recognized for its significant potential in the U.S. Gulf region. Production commenced in July, with initial reports indicating that four phase-one wells achieved a target output of 100,000 barrels of oil per day.
