BP America has announced it is moving its onshore business from Houston to Denver.
BP’s U.S. Lower 48 is one of several of the British oil giant’s U.S. divisions. It was established as a separate entity in 2015.
Its move to Denver is a reflection of the company’s shift in focus away from Texas in terms of production, said Craig Pirrong, professor of finance at the University of Houston.
“They sold off some of their Permian properties about five years ago, I think, and have overall been reducing their footprint in Texas and focusing more on the Rockies region,” he said.
The company says about two-thirds of its onshore oil and natural gas production is in the Rocky Mountains area.
The new Denver office is slated to open in the first quarter of 2018 with at least 200 employees. Many of those will relocate from Houston, where BP currently employs about 4,500 people.
In an email to News 88.7, the company said its U.S. headquarters will remain here and its onshore business will keep a large presence in Houston to manage its assets in South and East Texas.
Other BP divisions with head offices in Houston include Gulf of Mexico, wind energy and upstream technology.