BP is selling four of its oilfields, located on the North Slope of Alaska, to the exploration company Hilcorp. The sale agreement includes all of BP’s interests in the Endicott and Northstar oilfields and a 50 percent interest in each of the Liberty and the Milne Point fields. The sale also includes BP’s interests in the oil and gas pipelines associated with these fields. Together the assets included in the sale represent approximately 19,700 barrels of oil equivalent a day (boe/d).
“This agreement will help build a more competitive and sustainable business for BP in Alaska,” commented BP Upstream Chief Executive Lamar McKay. “It will allow us to play to two of our great strengths, managing giant fields and gas value chains. We will now concentrate on continuing development and production from the giant Prudhoe Bay field and working to advance the future opportunity of Alaska LNG.”
The agreement does not affect BP’s position as operator and co-owner of the Prudhoe Bay oilfield nor its other interests in Alaska. As a result of the sale and subject to approval, Hilcorp is expected to become the operator of the Endicott, Northstar and Milne Point oilfields and their associated pipelines and infrastructure.