StockMarketWire.com - Mining giant BHP said it had agreed to acquire Hess Corporation's 28% working interest in Shenzi, a six-lease development in the deepwater Gulf of Mexico, for $505 million.

The acquisition, expected to close by December, would bring BHP's working interest to 72% and immediately add approximately 11,000 barrels of oil equivalent per day of production.

'We are purchasing the stake in Shenzi at an attractive price, it's a tier one asset with optionality, and key to BHP's Gulf of Mexico heartland,' the company said. 'As the operator, we have more opportunity to grow Shenzi high-margin barrels and value with an increased working interest.'

Shenzi was structured as a joint ownership, with BHP now owning a 72% stake and Repsol S.A., a 28% stake. Story provided by StockMarketWire.com