Energy giants eye majority stake in key US Gulf oil field Exclusive by Reuters

Major European energy companies, including TotalEnergies and Shell, are among a group of firms evaluating a potential acquisition of a majority stake in one of the most promising offshore sites in the US Gulf, according to sources familiar with the process, as quoted by Reuters. The growing interest reflects rising demand for North American energy assets amid the ongoing conflict in the Middle East.

BP is also interested in the opportunity, according to multiple sources, while Spain’s Repsol has likewise expressed interest. Chevron is also expected to consider submitting a bid.

The sale process was recently launched by two of the current owners of the Shenandoah offshore field, who are offering potential buyers a combined 51% stake in the project. The sellers are Beacon Offshore Energy, backed by Blackstone and serving as the field’s operator, and HEQ Deepwater, which is owned by Quantum Capital Group and Houston Energy. The remaining stake in the project is held by Israel’s Navitas Petroleum.

Initial bids are expected to be submitted in the coming weeks. Additional interest may emerge from major energy producers in the Middle East and Asia, according to another source familiar with the situation.

However, sources cautioned that not all interested parties are certain to proceed with bids. The eventual valuation of the deal will depend on several factors, including the final size of the stake offered and developments in global oil prices. All sources spoke on condition of anonymity due to the private nature of the discussions.

Several companies, including TotalEnergies, Repsol, BP, Beacon Offshore Energy, Quantum Capital Group, Blackstone, and Shell, declined to comment on the matter. A representative for HEQ Deepwater also declined to comment. A spokesperson for Chevron said the company “regularly evaluates its business opportunities and portfolio” but does not disclose its business development strategies.

The Shenandoah field is an ultra-deepwater project, with oil and gas located in reservoirs approximately 30,000 feet below the seabed. Such operations are considered technically complex, involving pressures of around 20,000 pounds per square inch. Despite these challenges, industry experts regard the field as one of the most promising in the US Gulf region.

Production at Shenandoah began in July. In October, Beacon Offshore Energy reported that four phase-one wells had reached their targeted output of 100,000 barrels of oil per day.

According to one source, the value of US oil and gas assets has been boosted by the war, driven both by rising oil prices and by the strategic advantage of assets located far from conflict zones, allowing for global supply flexibility.

By Tamilla Hasanova