Beacon Offshore Acquires LLOG’s 31% stake in the Shenandoah Field
Beacon Offshore Energy LLC, an E&P company backed by private equity firm Blackstone Group LP, has signed a preliminary deal with LLOG Exploration Company LLC to acquire an additional 31% interest and operatorship of the Shenandoah project located in the U.S. Gulf of Mexico, according to a statement released by project partner Navitas Petroleum LP. The terms of the deal have not been disclosed.
Upon completion, Beacon Offshore will hold an increased 47% operated interest in the field, with a subsidiary of Navitas holding the remaining 53%.
The deepwater Shenandoah field is situated within the Walker Ridge area of the Gulf of Mexico in an average water depth of approximately 1,800 meters, and was discovered by Anadarko Petroleum Corp. in 2011. A Final Investment Decision (FID) for developing the field is expected to be made by the end of 2020, with production commencing in 2024.
Houston-based Beacon Offshore was formed in 2016 with an equity commitment from funds managed by the Blackstone Group. The company is focused on projects in the Gulf of Mexico. Covington, Louisiana-based LLOG is a privately-held oil & gas company focused on exploration and production operations in the deepwater Gulf of Mexico.
The transaction is subject to obtaining the necessary approvals and is expected to close in Q3-2020.