US-based LLOG Exploration has teamed up with BLACKSTONE Energy Partners to invest a combined $1.2bn in offshore energy assets in the Gulf of Mexico.

Under the terms of the deal both companies will develop LLOG Exploration’s existing energy assets in the region, including several recent deepwater discoveries.

"Under the terms of the deal both companies will develop LLOG Exploration’s existing energy assets in the region."

The two companies said in a joint press statement that they have agreed to utilise the investment for the development of more than 110 offshore leases and to bid on additional leases in federal sales.

LLOG CEO Scott Gutterman told nola.com that the new deal will be a long-term strategic partnership.

"This transaction is indicative of the many exciting assets and opportunities we have at LLOG and will enable us to capture opportunities that we could not otherwise pursue," Gutterman added.

"We believe the Gulf of Mexico deepwater is one of the most attractive oil plays in the world, and we expect to continue to be a long-term, significant player in the basin."

Blackstone Energy Partners oil and natural gas unit managing director, Angelo Acconcia, said: "We are very excited to form this long-term partnership with LLOG to accelerate the growth and development of LLOG’s attractive and extensive portfolio of discoveries and prospects."

The new deal, however, does not include the Who Dat field, which is among LLOG Exploration’s largest recent discoveries.

Located in the Mississippi Canyon area of the Gulf, the field started production late last year with estimated reserves of 200 to 300 million barrels of oil equivalent.