Hess in offtake talks for deepwater gas fields offshore Australia

Offshore staff

NEW YORK – Hess Exploration Australia has signed a non-binding letter of intent (LOI) with the North West Shelf (NWS) covering development of the company’s deepwater Equus gas discoveries in its permits offshore northwestern Australia.

Subject to execution of binding agreements, the production would be transported to existing NWS processing and liquefaction facilities in Karratha, Australia. Hess would then market liquefied natural gas (LNG) to customers in the Asia/Pacific region.

NWS is a joint venture between BHP Billiton Petroleum (North West Shelf), BP Developments Australia, Chevron Australia, Japan Australia LNG (MIMI), Shell Australia, and Woodside Energy Ltd. (operator).

Hess and NWS plan to conduct joint engineering studies and further progress their commercial discussions.

The company has 100% interests in the WA-390-P and WA-474-P permits that contain the Equus fields. They are located roughly 115 mi (185 km) from the northwest coast of Australia in water depths of around 3,600 ft (1,097 m).

Hess does not expect an Equus sanction decision before 2017.

12/23/2014

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