Sources say that oil giants have shown early interest in US Gulf Deepwater Field stake

TotalEnergies, a European energy giant, and Shell are among the companies that want to buy a majority stake at one of?U.S. Three sources familiar with the process have said that the Gulf is one of the most promising sites. This is because the Middle East conflict has heightened 'interest in North American energy prospects.

Two people, including a fourth, said that BP, a London-listed company, is also interested. Repsol of Spain is, too, a fifth said. Two people have said that Chevron will also consider a bid. Three people reported that two owners of Shenandoah's offshore field have started a process to sell their stakes. They are offering 51% of this project to?potential buyers. Blackstone-backed Beacon Offshore Energy is the seller, while HEQ Deepwater owned by Quantum Capital Group, Houston Energy and Houston Energy, is also part of the selling pair. Navitas Petroleum in Israel holds the rest of the holding.

Sources said that initial bids will be submitted in the coming weeks. According to a sixth person with knowledge of the procedure, other parties who may be 'drawn into the process' include large Middle East energy producers and Asian energy producers.

The sources, who spoke on condition of anonymity as the talks were confidential, said that not all parties would end up bidding. And the valuation of the deal will depend on various factors, including the amount of Shenandoah sold in the end and the oil price.

Total, Repsol BP, Beacon Quantum Blackstone Shell and Shell all declined to comment. A representative of HEQ declined to comment. Chevron evaluates its portfolio and business opportunities on a regular basis. Chevron's spokesperson stated that the company does not reveal its business development strategies.

ULTRA DEEPWATER

Shenandoah, an ultra-deepwater field with reservoirs around 30,000 feet in depth, contains oil and gas. Industry experts believe that such exploration, which involves pressures of around 20,000 pounds per square inch, is technically challenging. However, it has some of the most potential in the U.S. Gulf Region. Shenandoah started production in July. Beacon reported that in October, four phase-one oil wells had achieved the targeted production of 100,000 barrels per day.

One source said that the potential value of U.S. assets in oil and gas has benefited from the war because of 'both the rising oil price?and their distance from the conflict zone, and the fact they can be shipped worldwide.

(source: Reuters)