Global oil and gas giant BP will move its onshore business headquarters to Denver, a move that is expected to bring at least 200 jobs to Colorado, the company announced Wednesday morning.

Currently headquartered in Houston, BP’s Lower 48 operations will move to Denver to be “closer to its substantial asset position in the Rocky Mountain region and an important energy hub of the future,” the company said in a news release.

In a statement via spokeswoman Kathy Green, Gov. John Hickenlooper heralded the development:

We are thrilled to welcome the headquarters of BP Lower 48 from Houston to Colorado. BP is able to tap into Colorado’s thriving energy industry networks, the abundance of top engineering talent, and our world class higher education institutions. This move reflects Colorado’s emergence as a national energy center and we look forward to continuing to grow this partnership.

The announcement marks a return to Denver, where BP legacy companies once had a significant presence.

“In some ways, this is a homecoming for us,” David Lawler, chief executive of BP Lower 48, said in a statement. “With two-thirds of our operated oil and natural gas production and proven 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.”

Lower 48 produces natural gas, along with oil, condensate and gas liquids. Last year it produced an average of 300,000 barrels of oil equivalent each day.

Operations span five states, including Colorado, New Mexico, Oklahoma, Texas and Wyoming, encompassing seven oil and gas basins. Lower 48 is the largest operator in the Colorado side of the San Juan Basin, with operations based in Durango.

Owned by BP, Lower 48 operates as a separate entity.

The company signed a lease for 86,000 square feet of office space in the Riverview building at 1700 Platte Street in the Lower Highlands district near downtown Denver. The company anticipates the office will open with at least 200 employees, including the chief executive and executive leadership team, with more staff to be added later.

The new office is expected to open in the first quarter of 2018.