CATEGORIZED | News, Onshore Advances

BP to form separate business to manage assets onshore US

Posted on 05 March 2014

BP has announced its intention to establish a separate business to manage its onshore oil and gas assets in the US Lower 48. The new business will operate separately from the rest of BP and will be designed to adapt to the rapidly changing and hyper-competitive energy landscape in the region. This move is expected to help unlock the significant value associated with BP’s extensive resource position in the US Lower 48 onshore, which BP currently oversees through its Houston-based North America Gas group.

“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 US Lower 48 onshore business, with safety remaining its top priority. The business will be led by a separate management team and be housed at a new location in Houston, apart from BP’s Westlake campus. It will have separate governance, processes and systems designed to address the competitive and operating environment in the US Lower 48 onshore. BP is expected to begin disclosing separate financials for the new business in 2015.

These changes are chiefly intended to improve competitiveness of the US Lower 48 onshore business through greater speed of innovation, faster decision-making and shorter cycle times from access through to production, together with more efficient cost management. Much of what BP does in other onshore regions around the world will continue to rely on the scale, capital, technology and project management capabilities that only a major international oil company can provide.

“Our overriding goal is to build a stronger, more competitive and sustainable business that we expect will be a key component of BP’s portfolio for years to come,” Mr McKay said.

The changes to BP’s US Lower 48 onshore business are consistent with the group’s strategy of delivering value over volume. BP also believes these moves will enhance efforts to develop industry-leading technology that will be a critical part of BP’s global strategy in unconventional oil and gas resources going forward.

“Participating in the US Lower 48 onshore is key to our upstream strategy because we believe the region will remain at the forefront of innovation and drive global learning in unconventional resources,” Mr McKay said.

Leave a Reply

*

FEATURED MICROSITES


Recent Drilling News

  • 24 October 2014

    GDF SUEZ, BP discover new Central North Sea Field

    “This is an encouraging exploration discovery in a part of the Central North Sea that needs additional volumes of hydrocarbons to open up development options…

  • 24 October 2014

    Chevron, BP discover oil in deepwater US Gulf of Mexico

    The discovery well, on Keathley Canyon Block 10, was drilled by operator Chevron on behalf of the Guadalupe co-owners. The well encountered significant oil pay…

  • 22 October 2014

    Shell discovers gas in pre-salt reservoir offshore Gabon

    Shell announced a frontier exploration discovery offshore Gabon, West Africa. The well Leopard-1 encountered a substantial gas column with around 200 m net gas pay…

  • 22 October 2014

    Statoil proves new oil resources near Grane field in North Sea

    Well 25/8-18 S, drilled by the rig Transocean Leader, proved an oil column of 25 m in the Heimdal Formation. The estimated volume of the discovery…

  • 21 October 2014

    IADC Cybersecurity Task Group to provide industry guidance to assess risks

    The oil and gas industry is not immune to cybersecurity threats, from computer viruses and malware to targeted attacks. The IADC Advanced Rig Technology (ART) Committee…

  • Read more news