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UPDATE 2-Concho: BP exercising rights on N.M. assets
July 30, 2010 / 9:54 PM / 7 years ago

UPDATE 2-Concho: BP exercising rights on N.M. assets

* Concho says BP exercised certain purchase rights

* Concho believes relates to $400 mln of New Mexico assets

* Apache expects to be eventual owner of assets (Adds (Marbob) to clarify quote, paragraph 4)

NEW YORK, July 30 (Reuters) - Oil and gas company Concho Resources Inc (CXO.N) said on Friday that BP Plc (BP.L) has exercised preferential purchase rights for a portion 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 Corp (APA.N) 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 July 20, the same day as the Marbob deal.

“BP delivered a valid preferential rights claim and we expect them (Marbob) to deliver the properties,” Mintz said.

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. (Reporting by Michael Erman, editing by Matthew Lewis, Gary Hill)

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