BP’s lower 48 unit changes name after completing BHP deal

BP Upstream CEO Bernard Looney
BP Upstream CEO Bernard Looney

UK energy giant BP has wrapped up the £8 billion acquisition of BHP Billiton’s US share assets.

The deal, first announced in July, adds production of 190,000 barrels of oil equivalent (boe) per day and 4.6bn boe of discovered resources in Texas and Louisiana.

The transaction is estimated to generate more than $350 million of annual pre-tax synergies and is expected to boost upstream pre-tax free cash flow by $1bn, to $14-15 bn in 2021.

BP’s Lower 48 business will change its name to BPX Energy to mark a new era of growth for the division, which has operated as a separate entity since 2015.

Bernard Looney, BP’s upstream chief executive, said: “By every measure, this is a transformational deal for our Lower 48 business. It is an important step in our strategy of growing value in Upstream and a world-class addition to BP’s global portfolio.

“We look forward now to safely integrating these great assets into our business and are excited about the potential they have for delivering growth well into the next decade.”