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Hess divests its 15.67% interest in Schiehallion to Shell

Hess divests its 15.67% interest in Schiehallion to Shell

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 ...

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  • Hess divests its 15.67% interest in Schiehallion to Shell PDF - 482.39 KB 6 Pages, 4 Tables, 4 Figures


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This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

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

In this report there are 8 tables or charts, including:

  • Executive summary
  • Transaction details
    • Transaction details: Table 1
  • Upstream assets
    • Wood Mackenzie modelling assumptions for Schiehallion - production and capex (gross)
  • Deal analysis
    • Deal analysis: Table 1
    • Valuation of Schiehallion deal vs. other UK deals (oil focused, > US$200 million)
  • Upsides and risks
    • Commercial Asset Value Sensitivities (PV10)
  • Strategic rationale
    • Wood Mackenzie valuation (NPV10) of Shell UK portfolio, discounted to 2012 and 2017
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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