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9 Pages

Plains acquires deepwater GoM assets from BP for US$5.6 billion


Plains acquires deepwater GoM assets from BP for US$5.6 billion

Report summary

Plains is to acquire a portfolio of BP assets in deepwater Gulf of Mexico for US$5.55 billion. The assets include interests in three BP-operated platforms that have been onstream since as early as 1999: Holstein, Horn Mountain and Marlin hub, which includes the Marlin, Dorado and King fields. The agreement also includes non-operated stakes in the Hoover/Diana and Ram Powell platforms and underlying fields. We value the position acquired by Plains at US$4.3 billion (NPV10, discounted to ...

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  • Plains acquires deepwater GoM assets from BP for US$5.6 billion PDF - 580.25 KB 9 Pages, 6 Tables, 2 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
    • Holstein
    • Horn Mountain
    • Marlin Hub
    • Hoover/Diana
    • Ram Powell
  • Deal analysis
  • Upsides and risks
    • Near-field development prospects and effective use of EOR provide upside
    • Lower reserves from near-field prospects and cashflow represents risk
  • Strategic rationale
    • Plains Exploration & Production
    • BP
  • Oil & gas pricing and assumptions

In this report there are 8 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Deepwater Gulf of Mexico assets in the BP Plains transaction
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
  • Upsides and risks
    • Production (net) from acquired assets: post-2012 WoodMac forecasts vs. Plains target
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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