BP is selling part of its stake in an emerging oil-producing region in the Gulf of Mexico to Chevron, and the two companies, along with Conoco Phillips, will work to develop the fields together.
Terms of the deal were not disclosed. The joint-development agreement is a way for the companies to try to reduce the cost and risk of exploring and developing large, complex fields in the Gulf's deep waters at a time of low oil prices.
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For BP, it allows the company to move some of its recent discoveries closer to production as it continues to work to settle claims resulting from its 2010 oil spill in the Gulf.
Under the deal, which spans 24 jointly-held offshore leases, Chevron will replace BP as project operator.