Following the company’s acquisition of BHP Billiton’s (LON:BLT) shale sites in Eagle Ford, The Permian and Haynesville for a total of $10.5 billion, BP (LON:BP), has said it is considering selling its US oil and gas projects as part of its $6 billion asset sale program, as reported in Bloomberg.
As of 8.40 BST, BP currently sits on the UK benchmark index at 563.30 GBX −0.40 (0.071%) as investors digest the news. Meanwhile the FTSE 100 is up 0.67 per cent at 7628.81 points.
The company has, so far, experienced success in its bid to reduce the cost of shale production, with a total reduction of almost 35% spanning the last five years. The acquisition of BHP (LON:BLT) sites, which is BP’s (LON:BP) biggest deal since the Atlantic Richfield Deal of 1999, its daily shale and gas production has risen from 315,000 to 500,000.
Company to focus on higher quality, higher return assets
According to Bloomberg, BP said in a press statement: “Following the closing of BP’s recently announced acquisition of BHP’s U.S. unconventional oil and gas portfolio, BP Lower 48 may sell a portion of its legacy operating assets in U.S. onshore….it’s consistent with BP's approach of actively managing and high-grading its advantaged oil and gas portfolio, focusing on higher-return assets with significant development potential.”
BP has not yet issued any information on which sites may be affected.