BP plans to split its U.S. onshore oil and gas segment into a separate business, company officials said in a March 2014 statement. In recent years, BP has divested non-core assets to focus on the development of unconventional plays like the Eagle Ford Shale.
The new business, which will operate separately from BP, will have control of ~5.5 million acres in assets and over 21 wells. Approximately ~450,000 gross acres are in the Eagle Ford Shale alone. BP hopes to maximize competitiveness in the company's US Lower 48 onshore dealings with this new endeavor.
Read more: BP's Eagle Ford Shale Position Reaches 450,000 Net Acres
“Over the last few years, we have fundamentally reshaped our North America Gas portfolio,” said BP Upstream Chief Executive Lamar McKay. BP has done so by divesting non-core assets and focusing development in leading US unconventional plays like the Eagle Ford Shale in South Texas. “Now it’s time to reshape the way we run the business – and we are very excited about this bold step forward,” he said.”
BP will own the new business, but it will be led by a separate management team. The new company will also be structured differently, and operate in way that is more conducive to the competitive U.S. onshore environment. The company's primary goals with the creation of this new group are to speed innovation, foster faster decision making and generate shorter cycle times. The new business will be housed at a new Houston, Texas location, separate from BP's Westlake campus.
BP's New Company Highlights
- BP announces in March 2014 the creation of new company to focus on U.S. Lower 48 unconventional oil and gas resources
- The new company will have control of ~5.5 million acres in assets and over 21 wells. Approximately ~450,000 gross acres are in the Eagle Ford
- The creation of the new company is intended to spur decision making time, generate shorter cycle times and speed innovation
- BP has been divesting non-core assets to focus attention on the development of unconventional plays like the Eagle Ford Shale in recent years
Read more at bp.com