BP has agreed to acquire a portfolio of unconventional oil and gas assets from BHP in a move that will upgrade and reposition its US onshore oil and gas business.
The deal will bring BP extensive oil and gas production and resources in the Permian and Eagle Ford basins in Texas and in the Haynesville gas basin in Texas and Louisiana.
Under the terms of the agreement, BP America Production Company will acquire from BHP Billiton Petroleum 100% of the issued share capital of Petrohawk Energy Corporation – a wholly owned subsidiary of BHP – for $10.5 billion.
The transaction is expected to be complete by the end of October.
The assets include 470,000 net acres of licences, including a new position for BP in the Permian-Delaware basin, and two positions in the Eagle Ford and Haynesville basins. These have a combined production of 190,000 barrels of oil equivalent per day.
The acquisition will significantly increase the liquid hydrocarbon proportion of BP’s production and resources in the US onshore, to around 27% of production and 29% of resources from the current 14% and 17% respectively.
Bob Dudley, BP group chief executive, says: ‘This is a transformational acquisition for our Lower 48 business, a major step in delivering our upstream strategy and a world-class addition to BP’s distinctive portfolio.