BP’s US Lower 48 Onshore oil and natural gas business announced that it has significantly expanded its operations in the San Juan Basin, which spans northern New Mexico and southern Colorado, by acquiring all of Devon Energy’s assets in the region. This marks the first major acquisition by this business in more than seven years.
The bulk of the acquired assets consist of Devon’s operated interest in the Northeast Blanco Unit (NEBU), a section of federal lands located in San Juan and Rio Arriba counties of New Mexico, where BP has had a presence since the 1920s. BP anticipates taking over operations of the unit’s 480 wells spread across 33,000 gross acres in the first quarter of 2016 after receiving required government agency approvals.
“This acquisition clearly demonstrates the importance of New Mexico and the San Juan Basin to our future,” said David Lawler, chief executive of BP’s US Lower 48 Onshore business, headquartered in Houston. “It’s also consistent with our strategy of selectively expanding in BP’s existing onshore basins, where we can link our innovative well design capability with our extensive subsurface expertise to generate industry leading capital efficiency.”
In early 2015, BP began operating its US Lower 48 Onshore operations as a separate business, with different governance, processes and systems designed to compete in the unique operating environment of the U.S. onshore industry. The business has begun to demonstrate material improvements in innovation, performance and competitiveness and therefore higher capital efficiency and lower operating costs—all while maintaining an unwavering commitment to safety and to the environment.
BP's U.S. Lower 48 Onshore business, with a material resource base of approximately 7.5 billion bbl across 5.7 million net acres, has average daily net production of nearly 290,000 boe.
In the San Juan Basin, BP holds over 550,000 net acres and has average daily net production of approximately 100,000 boe.
BP currently employs approximately 300 people in the San Juan Basin of New Mexico and Colorado.
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