Skip to comments.BP to split off US onshore oil, gas business
Posted on 03/04/2014 12:13:56 PM PST by thackney
BP PLC reported plans to establish a separate business to manage its onshore oil and gas assets in the US Lower 48. BP currently oversees its Lower 48 onshore assets through its Houston-based North America Gas group.
The new business will operate separately from the rest of BP, led by a separate management team in Houston apart from the companys Westlake campus.
BP said it will have separate governance, processes, and systems designed to address the unique competitive and operating environment in the Lower 48 onshore. The company is expected to begin disclosing separate financials for the new business next year.
BP in recent years has reshaped its North American Gas portfolio by divesting noncore assets and focusing development in US unconventional plays such as the Eagle Ford shale in South Texas (OGJ Online, Apr. 4, 2013). Overall BP has invested $50 billion in the US over the past 5 years.
The company holds an unconventional resource base of 7.6 billion boe across 5.5 million acres and an interest in more than 21,000 wells.
The company employs 20,000 people in 50 states.
Corporate speak for mitigating the disaster which ObaMao and his privy council have hung on us?
This is a crock. Wisely they are mitigating negative litigation outcomes on their stationery assets.
Translated: This means by way of illustration that if I own a 10 million dollar shopping center, and I either am involved in some major litigation with the chance of a negative outcome OR I think I MAY become involved in same, then I go through a formal sale of that asset to an overseas company in which I may or may not own an interest, depending on the asset.
Non stationery assets can simply be removed from the country (electronically or in someone’s briefcase) (US) and dumped into a holding company.
The foregoing is the SIMPLEST explanation of what is likely going on.
Maybe they could call it something snappy. Like ‘Amoco’.
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