The global oil and gas producer BP announced plans Wednesday to run its onshore business Lower 48 from Denver.
Moving its headquarters from Texas allows BP to be closer to its rigs and operations in the Rocky Mountain region as well as positions the company for success when the oil and gas industry rebounds, according to an announcement.
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 neighborhood near downtown Denver. The company anticipates the office will open in 2018 with at least 200 employees, including the CEO and executive leadership team.
Colorado offered BP Lower 48 $8.9 million in incentives for creating 328 net new full-time jobs in Colorado with an annual wage of $207,730, according to the Office of Economic Development and International Trade.
“We are thrilled to welcome the headquarters of BP Lower 48 from Houston to Colorado… This move reflects Colorado’s emergence as a national energy center, and we look forward to continuing to grow this partnership,” Gov. John Hickenlooper said in a statement about the deal.
Denver offered BP $140,000 in incentives for the relocation including a $100,000 employment incentive grant and $40,000 in estimated tax credits through the Business Investment Program, according to the city.
“With so much of their work happening here in the region, and with all we have to offer for companies and their employees, this is a natural fit that will benefit both BP and Denver for years to come,” Mayor Michael Hancock said in a statement.
BP spun off its U.S. drilling operations in 2015. Its newly created Lower 48 business spans five states — Colorado, New Mexico, Oklahoma, Texas and Wyoming — and seven oil and gas basins. The company is the largest operator on Colorado’s portion of the San Juan Basin near the southern border of the state.
“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,” said David Lawler, CEO of BP Lower 48, in a statement.