23rd Apr 2014 05:28
LONDON (Alliance News) - Oil giant BP PLC Tuesday said it has agreed to sell interests in four BP-operated oilfields on the North Slope of Alaska to Hilcorp, a privately-held independent oil and natural gas exploration and production company.
The sale agreement includes all of BP's interests in the Endicott and Northstar oilfields and a 50% interest in the Liberty and the Milne Point fields. The sale also includes the company's interests in the oil and gas pipelines associated with these fields.
The assets included in the sale represent around 19,700 barrels of oil equivalent a day of net production for BP, less than 15% of the company's total net production on the North Slope.
The sale is expected to be complete by the end of the year. Financial details of the transaction were not disclosed.
Around 250 employees are associated with the assets included in the agreement. BP said it is committed to providing clarity about their future as soon as possible.
BP said it remains committed to its plans for increased investment at Prudhoe Bay. The agreement does not affect its position as operator and co-owner of the Prudhoe Bay oilfield nor its other interests in Alaska.
BP will now concentrate on continuing development and production from the Prudhoe Bay field and working to advance the future opportunity of Alaska LNG. The company also expects to submit a development plan for Liberty by the end of 2014.
BP Upstream Chief Executive Lamar McKay said, ''This agreement will help build a more competitive and sustainable business for BP in Alaska. It will allow us to play to two of our great strengths, managing giant fields and gas value chains.''
BP.L closed up around 1% on Tuesday at 486.65 pence.
Copyright RTT News/dpa-AFX
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