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BHP Billiton gracefully bows out of Gulf project

A Hess-operated project in the Gulf of Mexico, given the green light just last week, is now without its Australian-based partner, according to Petro Global News.

BHP Billiton has sold its 20 percent stake in the Stampede project, valued by Deutsche Bank at $450 million. However, the company has not publicly disclosed the purchaser or the actual value of the sale.

BHP’s move is part of a popular trend in the oil and gas industry in recent weeks. Many companies have begun consolidating portfolios and focusing on more lucrative key production areas.

BHP held stake in the project since 2005, when the Stampede well was first drilled. When operational in 2018, the project will produce up to 80,000 barrels of crude oil per day from the deepwater subsea well.

Although Hess operates the project in the Gulf, the endeavor is now equally divided between Chevron, Statoil, Hess, and Nexen. It is estimated that the Stampede formation contains 300 million barrels of recoverable oil equivalent.

Development on the project is set to begin in the next three months. Plans currently include six production wells and four water injection wells for the offshore site.