BP invests $10.5bn in BHP US shale oil assets
BP will buy US shale oil and gas assets from BHP, a global mining company, for $10.5bn in one of the largest purchases from the oil major in over twenty years.
The deal means BP will have more coverage in opportune onshore basins, something BP’s chief executive, Bob Dudley, has deemed a “traditional acquisition”.
In the meantime, BP has also boosted its quarterly returns for the first time in almost four years, which has led to the oil giant releasing a $6bn share buyback scheme.
BP used the money from sold upstream assets to fund the share buyback.
Before the BP deal, BHP was caught amidst an unsuccessful seven years of shale investment, which eventually led to the company going up for sale in August 2017.
“It was the wrong environment to have bought the assets when they did but this is the right market to have sold them in,” Craig Evans, the co-portfolio manager of the Tribeca Global Natural Resources Fund, said.
“This is a transformational acquisition for our Lower 48 business, a major step in delivering our upstream strategy and a world-class addition to BP’s distinctive portfolio,” BP’s Dudley said in a statement.
Leaders at BP are delighted with the sale as the deal will grow BP’s onshore oil and gas assets by 57%.
Looking for a new role in the oil and gas industry? Search our latest Oil and Gas Jobs today.