BP Seeks Bigger Footprint in US Shale as O'Neill Pushes Growth
BP has renewed its interest in U.S. shale assets after a period of divestments and debt reduction. The company's CEO, Meg O'Neill, is pushing BP back towards oil and gas growth.
BP entered the data room for Devon Energy's South Texas assets, including the Eagle Ford business, in late August. However, it ultimately walked away from a deal reportedly worth between $3.5 billion to $4 billion. The assets cover about 90,000 net acres and produced around 77,000 barrels of oil equivalent per day in the second quarter.
BP already has experience with the Eagle Ford region through its BPX Energy unit, which produced approximately 545,000 boepd in the second quarter, including about 205,000 boepd from the Eagle Ford. The company aims to reach over 650,000 boepd from BPX by 2030.
The interest is significant as BP had largely stayed out of the recent shale acquisition wave. However, under O'Neill's leadership, the company has started exploring opportunities in this area. Devon Energy is marketing both its Eagle Ford and Powder River Basin acreage following its $58 billion merger with Coterra.