UK-based energy giant and LNG player BP has completed the $10.5 billion acquisition of BHP’s U.S. unconventional assets in a deal that will boost BP’s U.S. onshore oil and gas portfolio.
The acquisition adds oil and gas production of 190,000 barrels of oil equivalent per day and 4.6 billion oil-equivalent barrels (boe) of discovered resources in the Permian and Eagle Ford basins in Texas and in the Haynesville natural gas basin in East Texas and Louisiana.
BP’s Lower 48 business also decided to change 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,” BP said in a statement.
BP’s existing U.S. onshore oil and gas business currently produces around 315,000 boe/d from operations across seven oil and gas basins in five states with resources of 8.1 billion boe.
The BHP acquisition will increase the liquid hydrocarbon proportion of BP’s production and resources in the U.S. onshore, to around 27 percent of production and 29 percent of resources from the current 14 percent and 17 percent, respectively, the company said.