BP is to hive off its US onshore operations into a separate company as it looks to step up its move into America’s lucrative shale oil and gas fields.
The new firm, which will operate separately from the main BP group, will be based in Houston and handle the company’s onshore oil and gas projects in the lower 48 states.
The new business will oversee unconventional oil and gas resources of around 7.6billion barrels of oil equivalent. It currently has stakes in more than 21,000 wells across the US, including the Eagle Ford shale play in Texas.
“Over the last few years, we have fundamentally reshaped our North America Gas portfolio,” said the firm’s Upstream chief executive Lamar McKay.
“Now it’s time to reshape the way we run the business – and we are very excited about this bold step forward.
“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,”
“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.”
The new unit will have its own management team and base away from BP’s campus in Houston. The company said it expected the new business to begin reporting separate financial results from next year.
The move would not impact on onshore operations elsewhere in the world, and was aimed at increasing competitiveness in the shale market, he added.
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