BP to buy Shell's stake in Gulf of Mexico deepwater fields

Company elected to exercise its rights to purchase the remaining stake in the fields

BP Exploration & Production has agreed to exercise its preferential rights to purchase Shell Offshore's stake in two Gulf of Mexico deepwater fields.
BP is the operator of the deepwater blocks Viosca Knoll 871 and 915, known as the Marlin and Dorado fields.

The company, which currently holds 75% stake in these fields, elected to exercise its rights to purchase the remaining stake in the fields after Shell decided to sell the properties to W&T Offshore.

Previously, W&T announced the acquisition from Shell of interests in five Gulf of Mexico deepwater producing fields such as Tahoe, SE Tahoe, Droshky, Marlin and Dorado fields.

And now, the Marlin and Dorado fields will not be included in W&T's acquisition from Shell.

Originally, W&T agreed to pay $450m in cash for interests in all six properties prior to post-effective date adjustments.

Excluding the Marlin and Dorado fields, W&T expects to pay an aggregate of $193m in cash to Shell and assume approximately $32m for the asset retirement obligations associated with the four offshore producing properties acquired or intended to be acquired from Shell.

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