LONDON (Alliance News) - BP PLC Wednesday said it has formed a new ownership and operating model with Chevron and ConocoPhilips which will focus on developing two significant BP discoveries and expand exploration access in the Gulf of Mexico.
Under the agreements, BP will sell half of its current equity stake in the Gila and Tiber fields in the Gulf of Mexico to Chevron. ConocoPhilips and Chevron have also agreed to joint ownership interests in the Gibson exploration blocks which will be drilled in 2015. BP didn't say how much it is selling the stake for.
As a result of the agreement, all three partners will have a more equal interest in the Gila and Gibson fields. BP will hold a 34% stake whilst Chevron will hold a 30% stake and ConcocoPhilips will hold a 30% interest.
In the Tiber fields, BP and Chevron will hold a 31% stake each, with Petrobas holding 20% and ConocoPhilips holding an 18% interest.
Chevron will operate the Tiber, Gila and Gibson fields. The transfer of ownership to Chevron will be completed once BP has finished drilling appraisal wells on the Gila and Tiber fields as it is the current operator, it said in a statement.
BP said the agreement will allow exploration to continue in the Gulf of Mexico, maintain capital discipline in a low oil price environment by sharing production costs and allow BP to focus on maximising production from its four other assets in the Gulf of Mexico.
"BP believes combining the technical strengths and financial resources of these three companies will provide greater efficiency through scale, reduce subsurface risk and increase the likelihood of achieving a future commercial development," said the company.
BP shares were down 2.4% to 430.20 pence per share on Wednesday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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