Unic Press UK: BP plc is to acquire oil and gas assets from BHP Billiton in a deal worth US$10.8 billion, payable in cash.
By the terms of the deal, BP will acquire 100% interest in the Eagle Ford, Haynesville, Permian and Fayetteville Onshore U.S. oil and gas assets.
In a press statement announcing that an agreement with BP plc had been inked, BHP Billiton, an Anglo-Australian multinational mining, metals and petroleum leviatian, said:
“BP American Production Company, a wholly owned subsidiary of BP Plc, has agreed to acquire 100% of the issued share capital of Petrohawk Energy Corporation, the BHP subsidiary which holds the Eagle Ford, Haynesville and Permian assets, for a consideration of US$10.5 billion (less customary completion adjustments). One-half of the consideration is payable at completion, with the balance (deferred consideration) being payable in six equal instalments over a six month period, the first instalment to be paid one month after completion.”
In a news release confirming the agreement, BP plc said:
“BP is buying ‘world-class’ unconventional oil and gas assets from BHP in a move that upgrades and repositions its American onshore business. The portfolio includes assets in the highly-prized Permian-Delaware basin in Texas, along with two premium positions in the Eagle Ford and Haynesville basins in Texas and Louisiana. The assets currently produce 190,000 barrels of oil equivalent (boed) per day, of which about 45% are liquid hydrocarbons. The $10.5 billion acquisition is the biggest since buying Arco in 1999 and will be fully accommodated within BP’s current financial framework.”
