bp considers forming shale joint ventures to join U.S. M&A wave

October 30, 2023

(WO) – On Monday, Oct. 30, Reuters reported that London-based bp has “held talks in recent weeks” with multiple entities to form joint ventures in various U.S. shale patches. The joint ventures would include its activities in the Haynesville shale gas basin as well as the Eagle Ford.

Citing three sources with direct knowledge of the matter, Reuter reported that the joint ventures would increase natural gas production while slashing costs at a time with U.S. majors are rapidly consolidating with smaller independents.

Earlier this month, ExxonMobil announced a historic $60 billion acquisition of shale driller Pioneer Natural Resources. Its competitor, Chevron, announced a $53 billion acquisition of Hess Corporation shortly after.

This trend comes as production from prolific U.S. shale basins hit a plateau.

While representatives from bp declined to comment, a consolidation would help the company reach its ambitious growth goals without the spending increase.

Connect with World Oil
Connect with World Oil, the upstream industry's most trusted source of forecast data, industry trends, and insights into operational and technological advances.