BP to create new business for U.S. onshore assets
New York • BP plans to create a separate, more competitive business to manage its onshore oil and gas assets, including its shale operations, in the 48 contiguous U.S. states.
BP PLC, which will own the new business, currently oversees the region through its North America Gas group based in Houston.
BP Upstream CEO Lamar McKay said in a statement that the company has reshaped its North America Gas portfolio over the past few years by shedding non-core assets and concentrating on unconventional development such as the Eagle Ford Shale in Texas.
"Now it's time to reshape the way we run the business," he said.
BP said that it is looking to improve competitiveness of the Lower 48 onshore business through faster decision-making, quicker innovation and more efficient cost management.
"Our overriding goal is to build a stronger, more competitive and sustainable business that we expect will be a key component of BP's portfolio for years to come," McKay said.
BP said the business will be based at a new location in Houston separate from its Westlake campus. The business will also have a separate management team and separate governance, processes and systems designed to address the region's unique competitive and operating environment.
BP, which is still contending with repercussions from the Deepwater Horizon spill in the Gulf of Mexico, plans to start reporting separate financial results for the new business in 2015. It does not include offshore operations.
Shares of London-based BP added 25 cents to $49.25 in Tuesday morning trading.