ConocoPhillips has signed an agreement with BP to sell its 16.5% stake in the Clair field, located offshore west of Shetland in the UK.
Upon completion, BP and ConocoPhillips will hold 45.1% and 7.5% interest in the Clair field respectively.
At the same time, the companies have also signed an agreement under which BP will sell its entire 39.2% stake in the Greater Kuparuk Area on the North Slope of Alaska, as well as its 38% interest in Kuparuk Transportation Company to ConocoPhillips.
The financial details of the two transactions were not disclosed. However, they are expected to be cash neutral to both the companies, excluding customary adjustments.
Both deals are expected to close later this year, subject to various federal, regulatory, and other approvals.
BP Upstream chief executive Bernard Looney said: “This is a further step in focusing our portfolio around core assets and developments which have the potential for significant growth.
“Clair is a key advantaged oilfield for our North Sea business, a giant resource whose second phase is about to begin production and which holds great potential for future developments.”
Operated by BP, the Clair field is estimated to host more than seven billion barrels of hydrocarbons originally in place.
The first phase started production in 2005, while the second development phase is expected to commence production later this year.
Last year, the field produced an average of 21,000 barrels of oil equivalent a day (boed).