BP plans new continental US business

BP has announced plans to establish a separate business to manage its onshore oil and gas assets in the continental US.

Designed to adapt to the rapidly changing energy landscape in the region, the new business will operate separately from the rest of BP.

The move is expected to help unlock the value associated with BP’s resource position in the onshore US and will improve competitiveness, enabling the company to remain at the forefront of the development of technologies for unconventional resources.

BP upstream chief executive Lamar McKay said that the company has reshaped its North America gas portfolio over the last few years.

"Now it’s time to reshape the way we run the business, and we are very excited about this bold step forward," McKay added.

BP will own the new business and will house it at a new location in Houston. Separate governance, processes and systems will be designed for the business to address the competitive US operating environment.

According to the company, the changes are consistent with the group’s strategy of delivering value over volume. BP also believes that the latest move will help to develop technology that will be a critical part of the company’s global strategy in unconventional oil and gas resources.

The company has already divested non-core assets and focused development in unconventional plays such as the Eagle Ford Shale in south Texas.