BP Looks to Form Joint Ventures to Boost US Shale-Sources

BP (NYSE:BP) is seeking to form joint ventures around its U.S. onshore natural gas fields to expand production and cut costs, Reuters reported Monday.

BP (BP) has held talks in recent weeks with several companies about tying up operations in the Haynesville shale gas basin, and is considering creating JVs in the Eagle Ford basin, but the talks do not include its positions in the oil-rich Permian basin for now, according to the report.

By pursuing joint ventures, BP (BP) can achieve growth ambitions while avoiding spending billions on acquisitions, but agreeing on the value of the combined assets and how to divide the venture’s ownership are among the hurdles BP must clear with potential partners, the report said.

Read the source article at MSN