BP has bought US shale assets in major bid to expand oil footprint

BP has bought US shale assets for $10.5bn (£8bn) in a move that will expand Britain’s international oil footprint in onshore basins.

In its largest deal in almost two decades, BP has agreed to acquire a swathe of southern US shale oil and gas assets from global miner BHP.

Such an acquisition is fresh evidence of the growing interest in the US shale sector, which many suppliers have invested in as a relatively low-cost alternative to conventional crude oil.

Bob Dudley, BP group chief executive, described the deal as a "transformational acquisition".

Dudley added: "Given our confidence in BP’s future – further bolstered by additional earnings and cash flow from this deal – we are increasing the dividend, reflecting our long-standing commitment to growing distributions to shareholders."

BP will buy the BHP stock which includes some of the richest oil fields in North America, based in regions such as Texas, Louisiana and Arkansas.

Analysts at London Capital Group said the deal "marks the end of an era for BHP as it gives in to pressure from activist investors Elliott Advisors and sells the site, which it purchased at the height of the oil boom."

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