Plains Exploration and Production Co. announced it acquired a string of assets in the deep waters of the Gulf of Mexico from BP for $5.5 billion. The company said the properties as of July were producing around 59,500 barrels of oil equivalent per day with "significant upside production potential" remaining.
BP Chief Executive Officer Bob Dudley said the divestment represents a business strategy that plays to the company's strengths.
"While these assets no longer fit our business strategy, the Gulf of Mexico remains a key part of BP's global exploration and production portfolio and we intend to continue investing at least $4 billion there annually over the next decade," he said in a statement.
Royal Dutch Shell confirmed it sold its 50 percent working interest in the Holstein field in the Gulf of Mexico to Plains for about $560 million. Shell said the field was producing about 7,400 barrels of oil per day during the summer.