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BP to Unload $3.0B in US Shale Assets to Fund BHP Deal

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   |    Thursday,December 20,2018

BP has launched a sale of approximately $3.0 billion worth of US onshore assets, according to a report by Reuters.

The sale proceeds will be used to fund its buyout of BHP Billiton's US onshore asset portfolio, which BP acquired in a $10.5B cash deal in October 2018.

It was not immediatelty clear which assets BP is including in the sale, however, the report noted that information packets pertaining to the assets was sent out to interested parties last week.

BP has noted that it wants to shift the majority of its focus to assets in the Permian and Eagle Ford plays - which were the main assets the company acquired from BHP. BP also picked up Haynesville assets in the deal.

Refresh - BP's Acquired Assets from BHP

  • Permian: 83,000 acres with c 3,400 gross drilling locations in the liquids-rich Delaware sub-basin of the Permian in West Texas. Multiple zones provide a deep and highly-economic inventory for future drilling and significant opportunities for application of BP’s industry-leading drilling techniques. Current production, c.40,000 boe/d, c.70% liquids.
  • Eagle Ford: 194,000 acres with 1,400 gross drilling locations in both the liquids-rich Karnes Trough and Eagle Ford wet gas window in South Texas. These present further opportunities for application of leading drilling techniques. There are significant opportunities for cost reduction through synergies with existing BP operations. Current production, c.90,000 boe/d, c.70% liquids.
  • Haynesville: 194,000 acres with 720 gross drilling locations in East Texas and Louisiana. The additions will double BP’s existing Haynesville production, more than triple its acreage position and provides opportunity to capture economies of scale. Current production, c.60,000 boe/d, all gas.

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