BP signed an agreement to acquire $10.5 billion worth of U.S. onshore Permian Basin, Eagle Ford and Haynesville basin oil and gas assets from BHP Billiton Petroleum, the wholly-owned subsidiary of BHP, the company said Friday.
The company said the acquisition would bring extensive oil and gas production and resources in the liquids-rich regions of the Permian and Eagle Ford basins in Texas and in the Haynesville gas basin in Texas and Louisiana.
Under the terms of the agreement, BP America Production Company will acquire from BHP Billiton Petroleum 100 percent of the issued share capital of Petrohawk Energy Corporation - the wholly-owned subsidiary of BHP which holds the assets - for a total consideration of $10.5 billion, subject to customary adjustments.
On completion, $5.25 billion, as adjusted, will be paid in cash from existing resources.
'$5.25 billion will be deferred and payable in cash in six equal installments over six months from the date of completion. Subject to regulatory approvals, the transaction is anticipated to complete by the end of October 2018,' BP said.
By Murat Temizer
Anadolu Agency
energy@aa.com.tr