BP to Sell Interests in Four Alaska North Slope Oil Fields to Hilcorp
Company to Focus on Prudhoe Bay Field and Alaska LNG Project
BP PLC said Tuesday it has agreed to sell its interests in four oil fields it operates on the North Slope of Alaska as it focuses operations on the Prudhoe Bay field and developing a liquefied natural gas project in the state.
The sale agreement with Hilcorp, a privately held oil and natural gas exploration and production company, includes all of BP's interests in the Endicott and Northstar oil fields, and 50% interest in the Liberty and Milne Point fields and associated pipelines and infrastructure.
Financial terms weren't disclosed.
The majority of the affected 250 employees are expected to be offered jobs with Hilcorp, BP said.
The sale, subject to state and federal regulatory approval, is expected to be completed by the end of the year.
"This agreement will allow us to play to two of our great strengths, managing giant fields and gas value chains," said Lamar McKay, BP's upstream chief executive.
BP said it plans to submit a development plan for Liberty by the end of the year.
As part of its plans at Prudhoe Bay, the largest oil field in North America, BP said it would add two drilling rigs—one in 2015 and a second in 2016—for an incremental $1 billion investment over five years.
The assets included in the sale represent approximately 19,700 barrels of oil equivalent a day of BP's net production, less than 15% of its total net production on the North Slope, the company said.
BP, one of the largest oil producers in Alaska, has about 20,000 workers in the U.S.