Hess divests its 15.67% interest in Schiehallion to Shell Report

Deal Insight 30 May 2012

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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below

Report summary

Hess has announced the divestment of its interests in the BP-operated Schiehallion field and the Schiehallion FPSO vessel in the UK West of Shetlands region. The consideration is undisclosed. Schiehallion is on the cusp of a major redevelopment programme, sanctioned in July 2011, that will see the installation of a new-build FPSO, new subsea infrastructure and an intensive drilling programme. The Quad 204 project will require US$3.3 billion of investment between 2013 and 2017, and push ...

Executive summary
Transaction details
Upstream assets
Deal analysis
Upsides and risks
- Upside
- Risks
Strategic rationale
- Hess
- Shell
Oil & gas pricing and assumptions

Tables and charts

This report includes the following images and tables:

Transaction details: Table 1
Wood Mackenzie modelling assumptions for Schiehallion - production and capex (gross)
Deal analysis: Table 1

Valuation of Schiehallion deal vs. other UK deals (oil focused, > US$200 million)
Oil & gas pricing and assumptions: Table 1
Oil & gas pricing and assumptions: Table 2
Commercial Asset Value Sensitivities (PV10)
Wood Mackenzie valuation (NPV10) of Shell UK portfolio, discounted to 2012 and 2017