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Plains Exploration & Production to Acquire Oil and Gas Fields in Gulf of Mexico from BP New Report

 

Naperville, IL -- (ReleaseWire) -- 11/01/2012 -- Plains Exploration & Production Company (PXP) agreed to acquire certain deepwater oil and gas fields in the US Gulf of Mexico, from BP Exploration & Production Inc. and BP America Production Company, both subsidiaries of BP p.l.c (BP), for a purchase consideration of $5.55 billion in cash. The transaction will have an effective date of October 1, 2012.

PXP will finance the acquisition cost through senior secured revolving and term loan credit facilities provided by J.P. Morgan Securities LLC, J.P. Morgan Chase Bank, N.A., Bank of America, N.A., BMO Capital Markets, Barclays Bank PLC, Citigroup Global Markets Inc., Royal Bank of Canada, The Bank of Nova Scotia, TD Securities, and Wells Fargo Bank, N.A.

J.P. Morgan Securities LLC and Barclays Capital Inc. are acting as financial advisors to PXP in the transaction. The acquisition will enable PXP to expand its oil exploration and production asset base in the Gulf of Mexico. The transaction is expected to be completed on November 30, 2012, and is subject to preferential rights, title and environmental due diligence, and other customary closing conditions.

Scope

- Rationale behind PXP acquiring stake in deepwater fields in Gulf of Mexico.
- Rationale behind BP divesting its stake in the fields.
- Geography Covered- US (Gulf of Mexico).

Reasons to buy

- Develop a sound understanding of PXP's acquisition plan of liquid rich assets in the Gulf of Mexico.
- To understand BP's divestment plan of non strategic assets.
- To know BP's divestment plan to fund the Gulf of Mexico Oil Spill Disposal Program

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