Offshore staff
HOUSTON -- Helix Energy Solutions subsidiary Energy Resource Technology GoM Inc. (ERT) has sold a 30% working interest in the Phoenix (Green Canyon blocks 236/237), Boris (Green Canyon block 282), and Little Burn (Green Canyon block 238) fields to Sojitz GoM Deepwater Inc., a wholly owned subsidiary of Sojitz Corp.
Terms include $30 million in cash and the recovery of all past and future capital expenditures related to the redevelopment of the fields, excluding the conversion of theHelix Producer I. Sojitz also will pay a share of the operating costs of the FPU.
"This transaction clearly demonstrates the ability of our two-stranded business model to enhance the economics of marginal fields, as the cash consideration received is directly linked to the creative and cost-effective redevelopment plan we have devised for this oil field and the oil and gas reserve potential we have identified on the leases," says Martin Ferron, president and CEO of Helix.
"We are very pleased to welcome Sojitz as a partner and look forward to working with them in the future. Their working interest participation will help to reduce the risk, capital expenditures, and service division profit deferral on this project. This sale will also allow us to accelerate the pursuit of other exciting oil and gas projects in our extensive exploration and development portfolio."
10/3/2007
