BP to sell Alaska business to Hilcorp

BP is to sell all its Alaskan operations and interests to Hilcorp for $5.6bn. The transaction includes interests in the giant Prudhoe Bay field and Trans Alaska Pipeline System (TAPS).

The deal forms a significant part of BP’s plan to divest $10bn of assets over 2019 and 2020.

BP’s net oil production from Alaska in 2019 is expected to average almost 74,000 b/d. BP operates Prudhoe Bay, with a working interest of 26%, and holds non-operating interests in the producing Milne Point and Point Thomson fields. It also holds non-operating interests in the Liberty project and exploration lease interests in the Arctic National Wildlife Refuge (ANWR), in addition to a 48.4% stake in TAPS.  

Hilcorp has been operating in Alaska since 2012 and is currently the largest private oil and gas operator in the state, operating more than 75,000 boe/d gross production. In 2014 Hilcorp purchased interests from BP in four operated Alaska North Slope oil fields.