Skip to main content
//empty //empty

In this file photo made Oct. 25, 2007, the BP logo is seen at a gas station in Washington.

Charles Dharapak/AP

Plains Exploration & Production Co said on Monday that it would buy BP PLC's stake in some deepwater Gulf of Mexico wells for $5.55-billion (U.S.) to boost its oil production.

Plains Exploration, better known by the PXP stock exchange symbol, has been cutting its exposure to natural gas, whose prices have plunged to decade lows. Crude oil prices, meanwhile, are hovering near $100 per barrel.

BP said in May that it expected to raise $38-billion from assets sales between 2010 and 2013 to pay for damages from the 2010 oil spill.

Story continues below advertisement

The amount BP will have to pay in damages for the Deepwater Horizon oil spill is still in dispute, but it could reach up to $21-billion.

PXP, whose shares fell nearly 6 per cent, is buying London-based BP's 100 percent stake in the Marlin, Dorado and King and Horn Mountain fields and said it would also pay $560-million to acquire the remaining 50 per cent working interest in the Holstein Field from Royal Dutch Shell PLC.

PXP will also get BP's 33.33 per cent working interest in the Diana-Hoover Field, which is operated by ExxonMobil Corp , and BP's 31-per-cent stake in the Ram Powell field, which is operated by Shell Offshore Inc.

The properties that Houston-based PXP is acquiring were producing an estimated 59,500 barrels of oil equivalent net per day at the end of July.

PXP sold natural gas assets in Texas for $785-million last November.

The deal follows a Reuters report on Sunday that said BP was in talks to sell some of its Gulf of Mexico oil fields to PXP. The report cited a person familiar with the matter.

Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies