HOUSTON – BP has formed a new ownership and operating model with Chevron and ConocoPhillips to focus on moving two significant BP Paleogene discoveries closer to development and provide expanded exploration access in the emerging geologic trend in the deepwater Gulf of Mexico.
Under the agreements, BP will sell to Chevron approximately half of its current equity interests in the Gila and Tiber fields. Prior to the transactions, BP had a 62% working interest in Tiber, with Petrobras owning 20% and ConocoPhillips holding 18%.
BP, Chevron, and ConocoPhillips also have agreed to joint ownership interests in exploration blocks east of Gila known as Gibson, where the companies plan to drill later this year. In Gila, BP previously held 65% equity and ConocoPhillips held 35%.
In Gibson, ownership in the six- lease area varied based on lease, with Chevron, BP and ConocoPhillips all holding stakes.
As a result of the agreements, the three companies will have the same working interests across Gila and Gibson and any future centralized production facility. Chevron will hold 36% interest, BP will hold 34%, and ConocoPhillips will hold 30%.
In Tiber, BP and Chevron will each hold equity interest of 31%, Petrobras 20%, and ConocoPhillips 18%.
Chevron will operate Tiber, Gila and Gibson, building on its recent success in starting up the Jack/St. Malo oil production platform in the Paleogene/Lower Tertiary on time and on budget. Operatorship is expected to be transferred after BP finishes drilling appraisal wells at Gila and Tiber.