RE: Polvo Production This is a very difficult transaction to fully appreciate without knowing all of the factors involved in the ultimate price.
I agree that for a large player like BP, small production such as this is more of a distraction than anything else. On this alone there could be upside.
The true value must take into account a number of factors. Of particular note is the apparently steep decline. The year over year decline since 2011 appears to be approximately 26%. However, this could flatten out over the next couple of years. In addition, the abandonment liabilities are substantial for a platform of this nature in addition to the wells. Don't be surprised if abandonment alone could be $200 million dollars or higher.
With respect to doing additional drilling from the platform, one must take into account how many slots the platform has. It appears as if it has approximately 10 wells already. The question would be "How many additional open slots are available for drilling". This is a limited number, so it is dangerous to assume more wells can be drilled. Any used slots only become available upon abandonment of existing wells.
Other things to understand, but that have not been spelled out, are the royalties, taxes and operating costs.
There may be some exploration potential in the area. If any new discoveries can be completed subsea and tied back to the platform, that would be a bonus. There certainly is extra capacity on the platform for additional production.
Time will ultimately tell how profitable this acquisition really is.