Shell Acquires Stake in BP's Conifer Prospect in the Gulf of Mexico

Shell completed its $16.5B acquisition of ARC Resources, adding 370K boe/d of production and 1.5M net acres in the Montney basin. ARC shareholders received C$8.20 in cash and 0.40247 Shell shares per ARC share. The deal is expected to boost Shell's production growth and free cash flow per share starting in 2027, according to the company.

BP appointed Ian Tyler, former CEO of Balfour Beatty, as its permanent chair. Amanda Blanc, senior independent director, will step down after a successor is found. BP's share price fell 0.6% on the news. Tyler, who also chairs Grafton Group, aims to engage with shareholders and support BP's strategic priorities. BP shares have gained 25% year-to-date, in line with Shell. Tyler will review his board commitments to focus on BP. Activist hedge fund Elliott Investment Management holds a stake in BP.

Shell acquires 30% interest in BP’s Conifer exploration prospect in the US Gulf, with BP retaining 70% and operatorship. Conifer is near BP’s Kaskida development, which has 275 million barrels of recoverable resources. Shell aims to strengthen its Gulf position, focusing on deepwater projects with low greenhouse-gas intensity. The first exploration well is expected in 2027. Financial terms were not disclosed.

Shell completed its $16.5 billion acquisition of ARC Resources, adding natural-gas and liquids production in Canada. ARC shareholders received cash and Shell shares. The deal expands Shell's Montney basin position, supports LNG strategy, and is expected to boost production growth and cash flow.

Shell plc has completed its acquisition of ARC Resources Ltd. (TSX: ARX), an energy company operating in Canada, for approximately US$16.5 billion. ARC shareholders will receive CAD $8.20 in cash and 0.40247 Shell shares per ARC share. The deal adds 370 kboe/d to Shell's production and is expected to be accretive to free cash flow from 2027.

bp and Shell agreed Shell will acquire a 50% stake in the Tupinambá block in Brazil and a 30% stake in five leases for the Conifer prospect in the US Gulf of Mexico. bp retains majority stakes and will operate both. Shell expects to drill Conifer in 2027 and Tupinambá soon. bp says the deals align with its capital allocation strategy. Completion of Tupinambá is subject to regulatory approvals.