Jul 27, 2018

BP buys US shale assets for $10bn

British oil and gas giant BP is buying $10.5bn of US shale assets as the higher oil price makes new extraction techniques more attractive again. BP's purchase is its largest acquisition since the Deepwater Horizon accident in the Gulf of Mexico, which it is still paying for in the US. The assets are being sold by Australian mining firm BHP Billiton. The deal marks a turning point for BP, which has had to rebuild its reputation in the US and is still paying the $65bn bill in clean-up and penalty costs resulting from the Gulf of Mexico rig disaster in 2010. The deal is BP's largest acquisition for nearly 20 years and will increase its US onshore oil and gas resources by 57%. Under the deal, BP 's American subsidiary will acquire Petrohawk Energy Corporation, which holds BHP's Eagle Ford, Haynesville and Permian assets in Texas and Louisiana. Oil and gas prices have recently climbed with oil currently priced at over $70 a barrel, making shale extraction more profitable again.

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