Navitas Petroleum (TASE: NVPT), controlled by Gideon Palmyra, today announced that it has made a final investment decision to develop the Shenandoah mega project in the US economic waters of the Gulf of Mexico. The total project budget is NIS 1.8 billion, with Navitas owning 49% of the reserve rights through its ShenHai subsidiary, and amounting to $900 million. Earlier this month, it was reported that the partnership had signed a financing agreement to develop the project. The other partners in the project are Beacon Offshore Energy (20.05%) and BOE II Exploration (10.95%) owned by Blackstone, while the other 20% will be owned by BOE III Shen, owned by Quantum Energy Partners. In conjunction with the final investment decision, the financial closing of the project financing agreement signed, as mentioned, earlier this month. “The Shenandoah project will generate a significant amount of value for Navitas, and we are very proud of the way we have come, from the acquisition of the rights to the development stage, while successfully maintaining all the milestones and plans we have presented to the investors,” said Navitas President Palmyra. One of the largest reserves in the Gulf of Mexico, estimated at 431 million barrels of oil.After development is completed in 2024, the project is expected to produce 80,000 barrels of oil per day from four production wells, and result in a chartered cash flow (with a capitalization rate of 10%) to Navitas at $1.4 billion and EBITDA of $750 million in first year of production (at $58 per barrel) Project break-even price at $16 per barrel Posted by Globes, Israel business news – en.globes.co.il – on 26 August 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021
Navitas makes final investment decision on the Shenandoah project
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