W&T Offshore Inc. and Baker Hughes have entered a partnership whereby BHGE will provide integrated oil field services and oil field equipment for a joint exploration and development program W&T entered with a group of investors to drill as many as 14 specified projects in the Gulf of Mexico over the next 3 years.
W&T Offshore in March entered the drilling partnership with an investor group led by an entity owned and controlled by funds managed by HarbourVest Partners to develop a specified group of wells on W&T-held leases and producing acreage in the gulf. Including W&T Offshore’s commitment, the company anticipates total commitment of as much as $419.6 million.
The initial investor group and W&T have agreed to an aggregate initial capital commitment of $230.5 million (subject to increase up to a maximum commitment of $275.9 million upon additional investors joining the program), which is sufficient to fund the drilling, completion, and tie-in of many of the project wells, W&T said. W&T is contributing 88.94% of its working interest in the 14 projects to the joint venture entity and retaining an 11.06% working interest.