BP creates new US oil-and-gas unit

NEW YORK — BP plans to create a separate, more competitive business to manage its onshore oil and gas assets, including its shale operations, in the 48 contiguous US states.

BP PLC, which will own the new business, currently oversees the region through its North America Gas group based in Houston.

BP Upstream chief executive Lamar McKay said in a statement the company has reshaped its North America Gas portfolio over the past few years by shedding noncore assets and concentrating on unconventional development such as the Eagle Ford Shale in Texas.


‘‘Now it’s time to reshape the way we run the business,’’ he said.

Get Talking Points in your inbox:
An afternoon recap of the day’s most important business news, delivered weekdays.
Thank you for signing up! Sign up for more newsletters here

BP said that it is looking to improve competitiveness of the Lower 48 onshore business through faster decision-making, quicker innovation and more efficient cost management.

‘‘Our overriding goal is to build a stronger, more competitive and sustainable business that we expect will be a key component of BP’s portfolio for years to come,’’ McKay said.

BP said the business will be based at a new location in Houston separate from its Westlake campus. The business will also have a separate management team and separate governance, processes, and systems designed to address the region’s unique competitive and operating environment.

BP, which is still contending with repercussions from the Deepwater Horizon spill in the Gulf of Mexico, plans to start reporting separate financial results for the new business in 2015. It does not include offshore operations.


Shares of London-based BP added 34 cents to $49.34.

Associated Press