BP’s U.S. Lower 48 onshore business is to establish its headquarters in Denver to be closer to its substantial operating asset position in the Rocky Mountain region and an important energy hub of the future.

The move highlights Lower 48’s continued momentum despite the current challenging energy price environment. It also marks a return to Denver, where BP legacy companies once had a significant presence.

“In some ways, this is a homecoming for us,” said David Lawler, CEO of BP Lower 48. “With two thirds of our operated oil and natural gas production and proved reserves in the Rockies, world-class universities nearby and a wealth of industry expertise in the region, Denver is a logical—and strategic—place for us to be and a natural fit for our business.”

BP has signed a lease for 86,000 square feet of office space in the Riverview building at 1700 Platte St. in the Lower Highlands district near downtown Denver. The company anticipates the office will open with at least 200 employees, including the CEO and executive leadership team, with more staff to be added later.

A number of employees from the company’s current head office in Houston will relocate to Denver, with others remaining in Houston to manage the company’s large operating assets in Texas.

“Houston will remain a large and important center for our business, and we have no plans to change that,” he said. “The same is true for Oklahoma City, which will remain a key hub for managing our assets in the Mid-Continent region. However, we believe this is another important step in our path to become a premier onshore operator and set it up for long-term success.”

Since early 2015, when BP began operating its U.S. Lower 48 business as a separate entity, the business has achieved significant financial and operational improvements, largely through the use of innovative drilling and completions techniques. It also has increased production and added acreage through acquisitions.

The new BP Lower 48 headquarters in Denver is expected to open in the first quarter of 2018.

Source: www.worldoil.com