BP Buys Stakes in Exploration Projects

BP said on Monday it had agreed to acquire stakes in off-shore exploration areas near Mauritania and Senegal from Dallas-based Kosmos (KOS.N) as it seeks to add to its oil and gas reserves.

The British oil company said it will buy a 62% stake and operating rights of Kosmos’ Mauritania exploration blocks, as well as a 32.49% interest in Kosmos’ exploration blocks near Senegal. The area in Mauritania, include the Tortue field with estimated reserves of more than 15 trillion cubic feet of gas. The total area acquired by the company contains about 50 trillion cubic feet of gas and more than 1 billion barrels of liquid resources, BP said.

BP is seeking to build its reserves back up after selling assets in recent years to pay for the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, the largest environmental disaster in US waters. The company will invest nearly $1 billion “mostly in the form of a multi-year exploration and development carry” into developing the acquired assets.

“BP’s entry into Mauritania and Senegal represents an exciting strategic opportunity to work with Kosmos Energy in an emerging world-class hydrocarbon basin,” BP chief executive Bob Dudley said.

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