• 5 minutes Iran Says It Arrested 17 CIA Spies, Some Sentenced To Death
  • 9 minutes Will We Ever See 100$+ OIL?
  • 13 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 14 hours Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 6 hours Renewables provided only about 4% of total global energy needs in 2018
  • 3 hours Platts says if Iran's 2 mm bbls exports comes back on market oil goes to $40 . . . What about new Permian pipelines 2.47 mm bbls coming ? . . . WHAT IF BOTH IRAN AND PERMIAN TOTAL 4.47 mm added bbls . . . OMG !
  • 1 hour Today United States President Trump Questioned U.S. Policing Straights of Hormuz for Rich Asian Countries. Allies Britain and Japan asked to participate. They said NO. Nice friends, huh. US spends $100 Billion a year Protecting Mideast Shipping Lanes!
  • 3 hours So You Think We’re Reducing Fossil Fuel? — Think Again
  • 6 hours N.Y. Governor Signs Climate Bill
  • 2 hours Oil Giant Saudi Arabia Is Set to Start First Wind-Power Plant
  • 22 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 16 hours U.S. Administration Moves To End Asylum Protections For Central Americans
  • 21 hours How is E&P of Marginal Oil on the UKCS Similar to the Shale Oil Operations in the US?
  • 3 hours EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 1 day Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 1 day Shale Oil will it self destruct?
Will The U.S Gas Glut Cap Oil Production?

Will The U.S Gas Glut Cap Oil Production?

The gas flaring crisis in…

Oil Capped By Shaky Demand Outlook

Oil Capped By Shaky Demand Outlook

Oil held up in Friday…

BP Considers Sale Of Oil, Gas Assets After BHP Acquisition

oil well

BP is considering the offloading of some older oil and gas production assets after it bought the shale business of BHP Billiton, the company told Bloomberg in a statement.

The supermajor agreed to buy BHP’s assets in the Eagle Ford, the Permian, and Haynesville in two transactions for a combined US$10.5 billion. Now it plans to sell oil and gas projects across the United States as part of its ongoing US$6-billion asset sale program that should provide it with the funds necessary to buy back some stock.

BP is among the biggest oil and gas producers in the country, with operations spanning across Wyoming, Oklahoma, Colorado, Texas, and New Mexico. It will now focus on the higher-return operations among them, the company said in the statement.

The BHP acquisition was an opportunity for BP to expand its presence in the shale patch, which chief executive Bob Dudley called “transformational”. Indeed, this is the biggest acquisition deal for BP since 1999, when it bought Atlantic Richfield Co. The addition of these assets will increase BP’s oil and gas resources onshore the United States by as much as 57 percent to 12.7 billion barrels of oil equivalent.

BP has been building its presence in the shale patch for a while now and has used cutting-edge tech to improve its cost efficiencies there. Last month, Reuters reported that BP had managed to reduce costs in shale wells by 34 percent over a period of five years. In 2017, the company’s shale business was back in black for the first time as a result of these improvements.

Now, after the BHP acquisition, its shale oil and gas production will increase to more than 500,000 barrels of oil equivalent daily, from about 315,000 boed. In the longer term, BP plans to boost its shale oil production specifically from 10,000 bpd to 200,000 bpd by 2025.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play