W&T Offshore, a Houston-based oil and gas E&P company, has announced a deal with a group of investors to form a joint venture (JV) for drilling up to 14 projects in the Gulf of Mexico in the next three years.
The parties have agreed to an initial capital commitment of $230 million (adjustable up to $275.9 million if more investors join) to cover drilling, completion and tie-in of some of the project wells, which will be on leases held by W&T.
Leading the investment group is an entity owned by Boston-based private equity firm HarbourVest Partners.
The announcement came soon after W&T revealed that it was the winning bidder on an interest in three Gulf of Mexico blocks that were offered because of the Chapter 11 bankruptcy filings of Houston-based Cobalt International Energy in December last year.
These blocks are in the Heidelberg field that is operated by Anadarko Petroleum in partnership with ExxonMobil, Italy’s Eni, Japan’s Marubeni and Norway’s Statoil.
W&T’s winning bid was for $31.1 million.