THE BRITISH ARE COMING, THE BRITISH ARE COMING, TO TEXAS!
Credit to PBOG Newsletter, in Texas for this news OF THIS $10.5 BILLION DOLLAR INVESTMENT IN TEXAS BY THE BRITS:
Updated 7/26/18 Industry News from the Permian Basin:BP American acquires 83,000 acres in Permian Basin, other assets in Texas
London-based BP American Production agreed to acquire 100 percent of the issued share capital of Petrohawk Energy, the subsidiary that holds BHP Billiton’s entire assets in the Permian Basin, Eagle Ford and Haynesville, for $10.5 billion. The agreement announced July 26 includes 4.6 billion boe of resources and 470,000 net acres of licenses with current production of 190,000 boed.
British Petroleum's largest acquisition in almost two decades.
The Dallas Morning News said it’s BP’s biggest acquisition in almost two decades and “another sign that BP has mostly rebounded from crude’s price crash and the fatal 2010 accident in the Gulf of Mexico.” After the Deepwater Horizon catastrophe, BP sold acreage and infrastructure in the Permian Basin, according to the Morning News, but this deal signals BP’s increasing confidence that it’s nearing the end of claims, fines and penalties from the accident. The transaction is expected to close in October.
Bernard Looney, BP Upstream CEO, said, “This is a major upgrade for one of BP’s key upstream regions, giving us some of the best acreage in some of the best basins in the onshore U.S. I believe our dynamic, highly-efficient team will be able to unlock the full potential of these assets.”
The transaction includes 83,000 acres in the Permian Basin with 3,400 gross drilling locations in the Delaware Basin, 194,000 acres in the Eagle Ford with 1,400 gross drilling locations in the Karnes trough and Eagle Ford wet gas window in south Texas, and 194,000 acres in Haynesville with 720 gross drilling locations in east Texas and Louisiana.
MPLX to expand infrastructure in Loving, Lea counties in New Mexico:
Findlay, Ohio-based MPLX, through subsidiary MarkWest Energy Partners, said July 26 it has reached agreements with Kaiser Francis Oil to provide gathering and processing services in the Delaware Basin. With Kaiser Francis as an anchor, MarkWest will develop the Tornado gas processing plant (200 million cubic feet per day) in Loving County and other infrastructure in Lea County, N.M. Both are scheduled for completion in August 2019.
Mike Hennigan, MPLX president, said the agreements “further advance our objective of providing fully integrated gathering, processing and gas transportation services for our producer customers in this prolific producing region.”