BP has agreed to sell its interests in four oilfields on the Alaska North Slope to US-based privately held oil and gas producer Hilcorp.
The transaction includes BP’s interests in the Endicott and Northstar oilfields and a 50% stake in each of the Liberty and the Milne Point fields.
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BP’s interests in the oil and gas pipelines associated with the fields have also been included in the sale agreement, which is expected to be completed by the end of the year.
The company said that the fields accounted for about 19,700 barrels of oil equivalent a day, less than 15% of its total net production on the North Slope.
BP upstream chief executive Lamar McKay said that the agreement will help the company build a sustainable business in Alaska.
"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," McKay added.
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By GlobalDataAround 250 jobs will be affected by the sale, and BP said that it is committed to providing clarity about their future as soon as possible.
The company will continue to operate the Liberty field, where work was halted in 2012 due to financial concerns. BP expects to submit a development plan for Liberty field by the end of the year and plans to build two drilling rigs in Prudhoe Bay oil field, one in 2015 and a second in 2016, at a total cost of $1bn.
Image: BP head office at 1 St James’s Square London, SW1Y 4PD, UK. Photo: courtesy of BP.
