Bob Dudley, CEO, BP
Mary Catherine Wellons | CNBC
A battle between Chevron and Occidental Petroleum to take management of U.S. driller Anadarko Petroleum is fueling hypothesis about extra oil and gasoline deal-making, however BP CEO Bob Dudley on Tuesday steered his firm will keep on the sidelines.
BP purchased BHP Billiton‘s U.S. shale belongings for $10.5 billion final 12 months, giving the oil main a foothold within the Permian Basin and different areas the place drillers extract oil and gasoline from rock formations. BP took over these operations final month.
“We have our plate full. It is the most important acquisition we have executed in 20 years,” Dudley informed CNBC’s Brian Sullivan on the Milken Institute World Convention in Beverly Hills, California.
“So I believe we’re positive, not on the hunt, however this does not shock me we’re beginning to see a number of the consolidation within the Permian,” he stated, referring to the highest U.S. shale oil area stretching from western Texas to southeastern New Mexico.
Anadarko’s acreage within the Permian is broadly seen as the corporate’s crown jewel and the most important prize for the profitable bidder. Warren Buffett’s Berkshire Hathaway entered the fray on Tuesday, committing to a $10 billion investment in Occidental to assist the driller purchase Anadarko.
Dudley stated BP wouldn’t put in a bid to rival Chevron’s and Occidental’s gives for Anadarko.
Dudley expects oil and gasoline firms to proceed putting offers and swapping acreage so as to string collectively steady strips of land within the Permian.
Earlier than the BHP buy, BP’s onshore U.S. operations principally produced pure gasoline. Dudley stated the “nice administration workforce” that oversaw that enterprise will deliver their expertise from the gasoline fields to BHP’s oil-rich belongings.