BP Selling Their Alaska Assets To Helicorp

Changes are happening in Alaska, BP is selling its Alaskan business to Helicorp for $5.6 billion.

The announcement was made after Hilcorp Alaska has agreed to purchase the entire business in Alaska. Under the terms Hilicorp will purchase all of the BP’s interests in the state for a total consideration of 5.6 billion.

The Sale will include the entire upstream and downstream business in the state, including BP Exploration Inc. that 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).

Bob Dudley, BP group chief executive, stated “Alaska has been instrumental in BP’s growth and success for well over half a century and our work there has helped shape the careers of many throughout the company. We are extraordinarily proud of the world-class business we have built, working alongside our partners and the State of Alaska, and the significant contributions it has made to Alaska’s economy and America’s energy security.

“Alaska has been instrumental in BP’s growth and success for well over half a century and our work there has helped shape the careers of many throughout the company. We are extraordinarily proud of the world-class business we have built, working alongside our partners and the State of Alaska, and the significant contributions it has made to Alaska’s economy and America’s energy security.”

“However, we are steadily reshaping BP and today we have other opportunities, both in the US and around the world, that are more closely aligned with our long-term strategy and more competitive for our investment. This transaction also underpins our two-year $10 billion divestment program, further strengthening our balance sheet and enabling us to pursue new advantaged opportunities for BP’s portfolio within our disciplined financial framework.

“As a highly capable operator with extensive Alaskan experience, Hilcorp is ideally placed to take this important business on into the future, continuing to optimize its performance and maximize its value for the State of Alaska. We are committed to a safe and smooth transition of operations so that our employees, partners and local, state and federal government officials all feel that we have handed over these important assets in the right way.”

This agreement is still subject to state and federal regulatory approval, the transaction is expected to be completed by 2020. It is part of BP’s plan to divest $10 billion of assets over 2019 and 2020