Subsequent Events

9 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

14.  Subsequent Events

On October 5, 2020, we entered into an agreement to sell our 28% working interest in the Shenzi Field in the deepwater Gulf of Mexico to BHP Billiton, the field’s operator, for total consideration of $505 million, subject to customary adjustments, with an effective date of July 1, 2020. Our net share of production from the Shenzi Field was 11,000 barrels of oil equivalent per day (boepd) during the first nine months of 2020. The sale is expected to close during the fourth quarter of 2020.

In October, the operator, BP, completed drilling the Galapagos Deep well (Hess 25%) in the Mississippi Canyon area of the deepwater Gulf of Mexico. The well was not a commercial success and third quarter results include exploration expenses of $37 million, primarily for well costs incurred through September 30, 2020. We estimate $7 million of additional exploration expense will be recognized in the fourth quarter of 2020 for well costs incurred after September 30, 2020.