Hess signs LOI with North West Shelf to liquefy Equus gas

Hess signs LOI with North West Shelf to liquefy Equus gas

NEW YORK -- Hess Exploration Australia, an Australian subsidiary of Hess Corporation, has signed a non-binding Letter of Intent (LOI) with the North West Shelf (NWS).

Hess intends to develop its natural gas discoveries in its deepwater permits offshore northwestern Australia and, subject to execution of binding agreements, toll the production through existing NWS processing and liquefaction facilities in Karratha, Australia. Hess would then market LNG to customers in Asia Pacific.

NWS is a JV between BHP Billiton Petroleum (North West Shelf), BP Developments Australia, Chevron Australia, Japan Australia LNG (MIMI), Shell Australia and Woodside Energy (operator). Hess and NWS plan to conduct joint engineering studies and further progress commercial discussions.

Greg Hill, President and COO of Hess said, “The combination provides an attractive option for Hess to commercialize its important Equus natural gas resource in a manner that delivers secure, reliable energy supplies into Asia Pacific LNG markets and creates value for our shareholders.”

Hess holds 100% interests in both the WA-390-P and WA-474-P permits that contain the Equus fields. These permits cover over 1 million acres and are located approximately 115 miles off the northwest coast of Australia in water depths of approximately 3,600 ft. An Equus sanction decision is not expected before 2017.