Helix Energy Solutions Secures Further Production and P&A Work with Acquired Leases in Gulf of Mexico
HOUSTON - Helix Energy Solutions Group, Inc. has announced that its wholly owned subsidiary Deepwater Abandonment Alternatives, Inc. (“DAA”) has acquired from MP Gulf of Mexico, LLC (“MP GOM”), a joint venture controlled by Murphy Exploration & Production Company – USA, all of MP GOM’s 62.5% interest in Mississippi Canyon Block 734, comprised of three wells and related subsea infrastructure, collectively known as the Thunder Hawk Field. Pursuant to the terms of the transaction, Helix receives the benefit of ownership of MP GOM’s interest, with a November 1, 2021 effective date purchase price adjustment resulting in nominal cash paid by MP GOM at closing, in exchange for the assumption of MP GOM’s abandonment obligations at the Thunder Hawk Field. In addition to anticipated future production revenue, DAA will operate the Thunder Hawk Field with Helix eventually expected to perform the required plug and abandonment operations.
Owen Kratz, President and Chief Executive Officer of Helix, stated, “This acquisition furthers Helix’s Energy Transition business model by taking on decommissioning obligations in exchange for production revenues. We have long communicated our unique position as a qualified offshore field operator that can also assume and efficiently discharge decommissioning obligations. We continue to pursue opportunities that enable us to enhance and extend the life of existing reserves and safely perform the related decommissioning of the infrastructure, in transactions that allow producers to remove non-core assets from their balance sheets. Following on from the past successful acquisition of our Droshky properties, we are excited to build upon this model with the acquired interest in the Thunder Hawk Field.”