BP sheds Alaska assets, sells to Hilcorp Alaska for $5.6B

Associated Press
JUNEAU, Alaska (AP) – BP is selling all its operations in Alaska, including its interests in both the Prudhoe Bay oil field and the trans-Alaska pipeline.

Company officials announced in a release Tuesday that it is selling to Hilcorp Alaska for $5.6 billion.

BP has been a major force in Alaska on the North Slope for over 50 years.

But BP Chief Executive Bob Dudley said the company has other opportunities, both in the U.S. and around the world, that are more competitive and better aligned with the company’s long-term strategy. It’s also fits BP’s plan to divest $10 billion in assets by 2020.

Under terms of the agreement, Hilcorp will pay $4 billion in the near-term and $1.6 billion later. The purchase is subject to state and federal approval.