UK’s BP has completed the US$10.5 billion acquisition of BHP’s U.S. unconventional assets in a deal that will significantly upgrade BP’s U.S. onshore oil and gas portfolio and help drive long-term growth.
The acquisition – which was announced in July and closed as scheduled on October 31– adds oil and gas production of 190,000 barrels of oil equivalent per day (boe/d) and 4.6 billion oil equivalent barrels (boe) of discovered resources in the liquids-rich regions of the Permian and Eagle Ford basins in Texas and in the Haynesville natural gas basin in East Texas and Louisiana.
“By every measure, this is a transformational deal for our Lower 48 business. It is an important step in our strategy of growing value in Upstream and a world-class addition to BP’s global portfolio,” said Bernard Looney, BP’s Upstream chief executive.
BP’s Lower 48 business also announced that it is changing its name to BPX Energy. The change marks a new era of growth for BP’s U.S. onshore oil and gas unit, which has operated as a separate entity since 2015 and has achieved material improvements in operational and financial performance since then.
“Our mission is to build an organisation imbued with a strong, inclusive, modern culture where everyone is respected, supported, and encouraged to achieve their highest potential and career aspirations; an organization that leads the industry in the protection of people and the environment, while simultaneously creating significant value for BP’s shareholders,” said Dave Lawler, CEO, BPX Energy
The “BP” portion of the business’s new name reflects that it remains wholly-owned by BP and a strategic business within BP’s Upstream organisation. The “X” stands for exploration -- both the search for new oil and gas resources as well as for new ideas and methods to fundamentally improve the business.