BP-Apache's $7 billion deal is month's largest

By far the biggest upstream petroleum transaction of the past month was the deal between BP and Apache Corp. On July 20, the companies announce an agreement whereby Apache would acquire all of BP's oil and gas operations, acreage, and infrastructure in the Permian Basin of West Texas and New Mexico, and in Egypt's Western Desert. Apache also will obtain substantially all of BP's upstream natural gas business in western Alberta and British Columbia. Apache will pay $7 billion for the assets, which include estimated proved reserves of 385 million barrels of oil equivalent.

"This is a rare opportunity to acquire legacy positions from a major oil company, with oil and gas production, acreage, infrastructure, seismic data, field studies, exploration prospects, and other essential aspects of our business," said G. Steven Farris, Apache's chairman and CEO. "We seldom have an opportunity like this in one of our core areas let alone three."

In another transaction involved BP, a consortium of Colombia's national oil company, Ecopetrol, and Talisman of Canada, will acquire BP Exploration Co. (Colombia) Ltd. (BPXE), a wholly owned BP subsidiary that holds BP's oil and gas exploration, production, and transportation interests in Colombia.

BPXE's assets include interests in five producing fields in four association contracts, four separate pipeline interests, and two offshore exploration blocks. Net proved reserves total some 60 million boe, and production is about 25,000 boe/day.

The sale of all these assets by BP is part of the company's plan to divest up to $30 billion of assets over the next 18 months.

One other deal of note is Midland, Tex.-based Concho Resources' acquisition of all the oil and gas assets of Marbob Energy Corp. and certain affiliates for $1.65 billion in cash and Concho securities. Marbob is a privately-held E&P company with operations in the Permian Basin of Southeast New Mexico. The acquisition includes a significant acreage position in the emerging Bone Spring play in Southeast New Mexico.

"Marbob's Bone Spring acreage, when coupled with our existing acreage, gives [us] over 100,000 net acres in one of the most exciting emerging plays in the industry today," said Timothy Leach, Concho's chairman and CEO.

More Oil & Gas Financial Journal Current Issue Articles
More Oil & Gas Financial Journal Archives Issue Articles
View Oil and Gas Articles on PennEnergy.com

Related Articles

Oryx enters Permian with $300M equity commitment

04/09/2014 Oryx Midstream Services LLC has received an equity commitment totaling up to $300 million, and will pursue midstream opportunities in the Permian Basin, focusing initially on the Delaware Basin in ...

Outrigger Energy further expands Permian footprint

04/09/2014 Outrigger Energy LLC is expanding its midstream capabilities in the Permian Basin with the addition of a natural gas gathering and processing and crude oil gathering system in the Midland Basin of ...

Energen sells natural gas utility to become a pure play in the E&P space

04/07/2014

Energen Corp. has signed a definitive stock purchase agreement to sell its natural gas utility business, Alabama Gas Corp. (Alagasco), to The Laclede Group Inc.

Welch appointed EVP, CFO of JP Energy Partners

04/03/2014

JP Energy Partners LP has appointed Patrick Welch as the company’s executive vice president and CFO. Welch has been serving as the interim CFO for the company since November of last year.

Rosetta Resources increases borrowing base to $950 million

04/03/2014 Rosetta Resources Inc. reports the amendment of its senior revolving credit facility to increase its borrowing base. Effective April 2, the company's borrowing base increased from $800 million to $...

More Oil & Gas Financial Articles

Oryx enters Permian with $300M equity commitment

Wed, Apr 9, 2014

Oryx Midstream Services LLC has received an equity commitment totaling up to $300 million, and will pursue midstream opportunities in the Permian Basin, focusing initially on the Delaware Basin in Texas and New Mexico.

Outrigger Energy further expands Permian footprint

Wed, Apr 9, 2014

Outrigger Energy LLC is expanding its midstream capabilities in the Permian Basin with the addition of a natural gas gathering and processing and crude oil gathering system in the Midland Basin of West Texas.

Energen sells natural gas utility to become a pure play in the E&P space

Mon, Apr 7, 2014

Energen Corp. has signed a definitive stock purchase agreement to sell its natural gas utility business, Alabama Gas Corp. (Alagasco), to The Laclede Group Inc.

Welch appointed EVP, CFO of JP Energy Partners

Thu, Apr 3, 2014

JP Energy Partners LP has appointed Patrick Welch as the company’s executive vice president and CFO. Welch has been serving as the interim CFO for the company since November of last year.

Rosetta Resources increases borrowing base to $950 million

Thu, Apr 3, 2014

Rosetta Resources Inc. reports the amendment of its senior revolving credit facility to increase its borrowing base. Effective April 2, the company's borrowing base increased from $800 million to $950 million.

Most Popular

Oil & Gas Jobs

Search More Job Listings >>
Subscribe to OGFJ