Holstein | Photo: SeatraxPlains Exploration takes reins on Gulf assets
Plains Exploration and Production (PXP) has closed on $6.1 billion worth of Gulf of Mexico assets belonging to BP and Shell, the company announced on 30 November 2012.
Funding for the transactions were paid from borrowings under the company’s senior secured revolving and term loan credit facility as well as net proceeds from senior notes issued in October 2012.
In September, The Houston-based independent explorer announced it had offered $5.5 billion for three BP-operated GOM assets: Marlin, Horn Mountain and Holstein. Similarly it offered Shell $560 million for its remaining interest in the Holstein field.
Marlin field began producing in 1999 and was followed by Horn Mountain in 2002 and Holstein field in 2004. The BP deal also includes BP’s non-operated intertest in Ram Powell (31%) and Diana Hoover (33.3%).
BP said the sale will allow it to concentrate on further Gulf of Mexico development as well as develop its current assets.
‘While these assets no longer fit our business strategy, the Gulf of Mexico remains a key part of BP’s global exploration and production portfolio and we intend to continue investing at least $4 billion there annually over the next decade,’ said Bob Dudley, BP group chief executive.
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