BP is the winner on BHP assets
https://www.ogj.com/articles/2018/07/bhp-to-exit-us-shale-with-deals-worth-10-8-billion.html
i wouldn’t call buying $20 billion worth of assets in the PERMIAN back in 2011 and now sells them for HALF THAT $10.5 billion.
I consider that to be a NET LOSS. And they sold it to BP AMERICAN?
Again, how is BP selling their AMERICAN holdings to BP AMERICAN any kind of ‘deal’?
THEY LOST HALF THEIR ASSETS VALUE and then sold it off to one of their subsidiaries.
From a tax standpoint, it’s a great way to take the loss off your sheets and still own all the assets.
Pretty slick, huh?
These are two different companies : BHP, a giant Australian mining company, and BP the former British Petroleum. They are two unrelated companies.
BHP probably did lose money on this deal but selling an oil and gas property for less than you paid for it isn’t necessarily a loss.
Oil and gas properties are for the most part depreciating assets that generate cash flow over their lifespan. So unless a new discovery is made on the property, price go up, or something to that effect then the oil that is removed and sold usually decreases the remaining value.
Yeah, I WOULD call that pretty slick. BP America/Apache Corp and BHP Billington are playing the US corporate tax laws like a harp…or more appropriately, like a hot banjo. But, you can’t fault them for structuring a potential loss to make a net profit. That’s business.
, Reeves county, TX
Lawrence, Not quite sure what you mean by the above. BHP is being forced to divest much of their foreign (meaning US) oil and gas assets by activist investors and board members in Australia who want them out of that business. BHP will take the asset write-down and tax hit to free themselves of, what their board now thinks, is a bad investment, today and in the future.
BP clearly has a different view and sees this as an opportunity to get a position in yet another trend in which they missed the boat. Also, as stated by others, BHP has no relationship to BP. And, I think you implied that BP has a relationship with Apache, which they don’t. Apache is an American company, formed by Ray Plank and others back in the 1950’s. It’s now a public company, but I wouldn’t be surprised if the Plank family aren’t major private shareholders.
AMOCO…American Oil Company (I used to work for them in Wink, Texas in the 70s) became Apache
Corporation, but while they were yet AMOCO in the early 80s they were bought out by BP (British Petroleum) and merged to become BP America, THEN changed their name to Apache Corporation.
They have interlocking directorships ALL OVER the world…a CommonWealth of corporations worldwide.
Before they became AMOCO in the mid to late 60s, they were Pan American Oil Company and even before that in the 50s they were Standard Oil of Indiana…Stanolind for short. They’ve ALWAYS been
a major player in the western Permian Basin and the eastern Delaware Basin operating out of Wink and
Monahans side by side with Humble/Enco/Exxon/Standard Oil of Chicago, and Chevron/Standard Oil of New Jersey in this area. I was THERE as a kid in Winkler, Ward, Andrews, Ector, Pecos, Loving
counties in the 50s and 60s when they were drilling tens of thousands of wells in those places.
Wink ISD was wholly supported by Stanolind/Pan Am, Humble/Enco/Exxon, and Chevron/StanolNJ all
through the 50s, 60s, 70s, right on up until today. They each had large production/man camps in and around Wink where everyone lived and worked for them. Most of my elementary school teachers lived
in the Humble camp and their husbands worked for Humble/Enco.
You gotta remember, these companies have BEEN here developing the Permian and now the Delaware Basins since the end of WWI in 1919. Some of those old wells drilled in Winkler county
in 1921 STILL are producing!
, Reeves county, Tx 
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