Plains Exploration & Production Company (PXP) has completed the divestment of its Gulf of Mexico shallow water shelf properties to McMoRan Exploration.

PXP received $86m for all of its interests in its Gulf of Mexico leasehold, which is located in less than 500ft of water.

PXP board chairman, president and CEO James Flores said that the Gulf of Mexico shallow water ultra-deep exploration programme continues to be a successful value creation strategy.

Barclays Capital and Jefferies & Company acted as advisors to PXP for the transaction.

PXP is an independent oil and gas company engaged in the activities of acquiring, developing, exploring and producing oil and gas in California, Texas, Louisiana and the Gulf of Mexico.