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BP sells the entire business to Hilcorp



ANCHORAGE (KTUU) – BP goes completely in Alaska by selling the entire business to Hilcorp Alaska.

The sale will include BP's entire upstream and midstream operations in the state, including BP Exploration (Alaska) Inc., which owns all of BP's upstream oil and gas interests in Alaska, and BP Pipelines (Alaska) Inc.'s interest in the Trans Alaska Pipeline System (TAPS).

Under the agreement, Hilcorp will pay BP a total of $ 5.6 billion, consisting of $ 4 billion to be paid in the short term and $ 1

.6 billion through a profit thereafter. This is subject to state and federal approval.

The transaction is expected to be completed in 2020.

The agreement represents a significant portion of BP's plan to dispose of $ 10 billion of assets during 2019 and 2020.

Approximately 1,600 employees are currently affiliated with BP's Alaska business, and BP is committed to providing clarity on their future as soon as possible as part of the transition process with Hilcorp.

The president of the Alaska Oil and Gas Association, a trade association, called the news "historic and bittersweet."

"Alaska loses a giant – a & # 39; big & # 39; company; but still welcome an expanded presence of Hilcorp, "said Kara Moriarty, president and CEO of AOGA.

Moriarty said there is a lot of uncertainty about what the decision means.

" We do not know all the details or implications of this the news today, so we are very aware of the uncertainty this is likely to cause in the short term for many Alaskan employees and entrepreneurs, "she said.

BP began working in Alaska in 1959, drilling the Confirmation well for the Prudhoe Bay oil field in In 1968, and in the mid-1970s, it helped build the 800-mile Trans Alaska Pipeline, BP began producing oil from Prudhoe Bay in 1977. The gigantic oil field – the most productive in US history – has produced over 13 to date. billions of barrels of oil and is estimated to have the potential to produce more than one billion barrels extra.

To read the full announcement, click here.

"Our Departure from Alaska Reduces does not in any way affect BP's commitment to America, "said Bob Dudley, CEO of the BP Group." We are still very bullish on the US energy sector. In just the last three years, we have invested more than $ 20 billion in the United States, and we will continue to look at further investment opportunities here. "

Hilcorp is one of the largest, privately owned independent exploration and production of oil and natural gas companies in the United States, according to the Anchorage Chamber of Commerce. They are headquartered in Houston, TX.

An earlier version of this article stated that Hilcorp Alaska is based in Anchorage. Hilcorp Alaska is an anchor-based subsidiary of Hilcorp Energy, based in Houston, TX.

This is a development story.

Copyright 2019 KTUU. All rights reserved.


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