BP announced its intention to establish a separate business to manage its onshore oil and gas assets in the US Lower 48.

The US Lower 48 onshore oil and gas business environment has unique characteristics. Responding to these, the new business will operate separately from the rest of BP and will be designed to adapt to the rapidly changing and hyper-competitive energy landscape in the region. This move is expected to help unlock the significant value associated with BP's extensive resource position in the US Lower 48 onshore, which BP currently oversees through its Houston-based North America Gas group.

"Over the last few years, we have fundamentally reshaped our North America Gas portfolio," said BP Upstream Chief Executive Lamar McKay. BP has done so by divesting non-core assets and focusing development in leading US unconventional plays like the Eagle Ford Shale in South Texas. "Now it's time to reshape the way we run the business – and we are very excited about this bold step forward," he said.

Tags: BP PLC