Privately owned LLOG Exploration Co. LLC of Covington, La., and Blackstone Energy Partners formed a long-term, strategic partnership in which the two committed to invest more than $1.2 billion to expand and accelerate LLOG’s offshore operations in the Gulf of Mexico.
Blackstone, a private equity fund, will provide financing along with LLOG’s operating expertise and financing to expedite development of LLOG’s deepwater discoveries and its exploration and appraisal of prospects on more than 110 offshore leases.
The partnership plans to expand LLOG’s asset base in the gulf through federal lease sale participation as well as through mergers and acquisitions.
LLOG said Who Dat field, brought onstream last year, is excluded from the LLOG-Blackstone partnership.
Scott Gutterman, LLOG’s chief executive officer, noted the partnership with Blackstone was the first time that LLOG joined forces with an equity partner on a companywide basis.
“We believe the Gulf of Mexico deepwater is one of the most attractive oil plays in the world, and we expect to continue to be a long-term, significant player in the basin,” Gutterman said.