Apache: US independent bought preference rights in BP deal.
Apache weighs in on Concho-Marbob deal
Oil and gas company Concho Resources said today that BP has exercised preferential purchase rights for some of Concho's recent $1.66 billion deal for privately held Marbob Energy.
Preferential purchase rights generally give a company the opportunity to match a value paid for an asset.
Concho said it believed that BP was exercising its right for $400 million of Marbob properties in the Permian basin, predominantly on the New Mexico shelf.
Apache expects to be the eventual owner of the properties, according to that company's spokesman, Bill Mintz.
BP agreed to sell $7 billion of assets to Apache, including its position in the Permian basin, on 20 July, the same day as the Marbob deal.
"BP delivered a valid preferential rights claim and we expect them to deliver the properties," Mintz said in a Reuters report.
Concho said that BP has yet to provide the notifications needed under the operating agreements for the properties.
It said Marbob and Concho have sued BP and Apache in New Mexico state district court to compel BP to provide the notifications required.
BP was not immediately available for comment.
