Exxon Mobil Corporation (NYSE:XOM) has agreed to sell its ownership in the Ursa and Princess fields located in the Gulf of Mexico.
Esperanza Capital Partners (ECP) and Andros Capital Partners are purchasing the stake as a joint venture (JV), with the financial terms of the agreement remaining undisclosed. This deal represents a significant move for both the buyers and the seller.
The JV between Esperanza Capital Partners and Andros Capital Partners is strategically focused on acquiring and further developing upstream assets in the deep-water regions of the Gulf of Mexico.
The divestment includes the current production from Ursa, which is around 8,500 barrels of oil equivalent per day, primarily comprising oil. Additionally, the deal includes related infrastructure, such as the Ursa Tension Leg Platform host facility, which strengthens the JV’s presence in the region.
The Ursa field covers several Mississippi Canyon Federal OCS Blocks, including 765, 766, 808, 809, 810, 852, 853, and 854.
Upon completion of the transaction, Esperanza will hold a 15.96% interest in the Ursa field. For ExxonMobil, this divestiture is seen as a strategic move that will enable the company to reallocate resources and focus on other priorities.
Esperanza Capital Partners sees this acquisition as a transformative transaction that aligns with the firm’s fundamental strategy since its inception. This marks Esperanza’s third investment in the Gulf of Mexico, in collaboration with Cockrell Interests LLC.
In a separate development, Vista Energy, an Argentina-based shale-oil producer, is considering acquiring assets from ExxonMobil to strengthen its presence in Argentina’s Vaca Muerta formation, a significant shale oil and gas reservoir. This potential acquisition underscores the global trend of energy companies optimizing their portfolios and investing in strategic assets worldwide.
These transactions highlight the dynamic nature of the energy sector, with key players continuously adjusting their strategies to navigate the complex landscape of global energy production and investment.
Featured Image: Unsplash
Author Stephanie Bédard-Châteauneuf