BP Wraps Sale of Alaska Business

Image Credit; BP
Image Credit; BP

BP Plc said it completed the sale of its Prudhoe Bay oil and gas producing properties to closely-held Hilcorp Energy, ending 60 years as a top Alaskan oil producer.

BP and other oil majors have reduced their production roles in the northernmost U.S. state as output slid and lower-cost fields emerged elsewhere. Hilcorp, known for buying up oil castoffs, acquired half of another BP Alaska project in 2014.

The $5.6 billion deal, including BP's stake in the Trans Alaska Pipeline System which carries crude oil from Prudhoe Bay to Alaska's southern coast, should wrap up this quarter, both companies said in statements.

"We look forward to continuing to drive economic growth, create Alaskan jobs and contribute to local economies for decades to come,” said Greg Lalicker, chief executive of Hilcorp Energy.

The agreement calls for Hilcorp to pay $4 billion to BP over an unspecified time, with the remaining $1.6 billion based on future earnings from the properties. Terms were revised and pushed back as Hilcorp sought to raise financing.

With Wednesday's purchase, Texas-based Hilcorp becomes the state's second-largest oil producer and reserves holder, behind ConocoPhillips. Hilcorp will nearly triple its workforce in Alaska, to 1,450 employees with the acquisition, said Luke Miller, Hilcorp spokesman.

 (Reporting by Gary McWilliams; Editing by Tom Brown)

Current News

Simulators Should Reflect Actual System Behavior, Not Perfection – Which Doesn't Exist in the Real World

Simulators Should Reflect Actu

St. Johns Ship Building Delivers Third CTV in 6 Months

St. Johns Ship Building Delive

Africa Oil to Buy Out BTG's 50% Stake in Nigeria Joint Venture

Africa Oil to Buy Out BTG's 50

EU to Place Sanctions on 19 Energy-Related Ships Including LNG Vessels

EU to Place Sanctions on 19 En

Subscribe for OE Digital E‑News

Offshore Engineer Magazine