BP Eyes Bigger U.S. Shale Footprint After Devon Deal Talks
Shale Footprint After Devon Deal Talks Julianne Geiger is a veteran energy journalist and market analyst with more than a decade of experience covering the global oil and gas sector.
Her… BP has started looking seriously at U.S.
shale assets again, including Devon Energy’s Eagle Ford business, as CEO Meg O’Neill pushes the company back toward oil and gas growth.
BP entered the data room for Devon’s South Texas assets after it opened in late August, according to Reuters sources.
One source said BP ultimately walked away from a deal.
Devon’s Eagle Ford position covers about 90,000 net acres and produced roughly 77,000 barrels of oil equivalent per day in the second quarter.
TPH Research valued the assets at about $4.5 billion this week, although Reuters sources put the likely range closer to $3.5 billion to $4 billion.
Its BPX Energy unit produced about 545,000 boepd in the second quarter, including approximately 205,000 boepd from the Eagle Ford.
BP is targeting more than 650,000 boepd from BPX by 2030.
Part of Devon’s Eagle Ford acreage was also held in a joint venture with BP until that partnership was dissolved last year.
The interest is notable because BP has spent much of the last 18 months selling assets, reducing debt and working toward a $20 billion divestment target.
It had largely stayed out of the recent shale acquisition wave.
| Product | Price | Change |
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