New BP Shale Unit
Today “Rigzone” reported that BP is establishing a separate onshore unit to improve the competitiveness of its U.S. shale gas portfolio. Many large oil companies feel that their shale assets have not performed as well as expected, and BP hopes that the new unit will expedite decisions and compress the elapsed time from concept to production. The shale subsidiary will be headquartered at a new location in Houston.
BP, Europe’s second largest oil company, also announced its plans to divest $10 billion in assets by year-end 2015. This will be in addition to the $40 billion in asset sales to fund settlement of Deepwater Horizon claims.
The new shale unit will manage BP’s unconventional assets estimated at about 7.6 billion barrels of oil equivalent, including the company’s stake in the prolific Eagle Ford. It will not be responsible for offshore properties.
To read the article in its entirety, please go to http://www.rigzone.com/news/oil_gas/a/131916/BP.