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Tue Aug 27, 2019, 04:13 PM

BP to quit Alaska after 60 years with $5.6 billion sale to Hilcorp

Source: Reuters

Ron Bousso, Tanishaa Nadkar

4 Min Read

(Reuters) - British oil major BP Plc (BP.L) on Tuesday agreed to sell all its Alaskan properties for $5.6 billion to privately held Hilcorp Energy Co, exiting a region where it operated for 60 years.

The deal, which includes interests in the most prolific oil field in U.S. history at Prudhoe Bay, and the 800-mile (1,300-km) Trans Alaska Pipeline, is part of BPs plan to raise $10 billion over the next two years through asset sales to further strengthen its balance sheet, it said.

For years, BP has been reducing its role in Alaska, where oil production for fallen with declines at the Prudhoe Bay field. BP, which began working in Alaska in 1959, is the operator and holds a 26% stake in Prudhoe, where production began in 1977.

In 2014, BP sold Hilcorp half its share of an Alaskan project. This year, the two were due to decide whether to go ahead with an ambitious $1.5 billion offshore project that requires construction of a manmade island.

Read more: https://www.reuters.com/article/us-bp-divestiture/bp-to-quit-alaska-after-60-years-with-5-6-billion-sale-to-hilcorp-idUSKCN1VH21N?il=0

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Reply BP to quit Alaska after 60 years with $5.6 billion sale to Hilcorp (Original post)
turbinetree Aug 27 OP
JudyM Aug 27 #1
Demonaut Aug 27 #4
dixiegrrrrl Aug 27 #2
Quackers Aug 27 #3
clementine613 Aug 28 #5

Response to turbinetree (Original post)

Tue Aug 27, 2019, 05:18 PM

1. BP has been in Alaska since the year it became a state. Hm. Apparently they were ready.

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Response to JudyM (Reply #1)

Tue Aug 27, 2019, 10:58 PM

4. BP lost its patience with a well that produces but too slow a rate

they have the money to build quickly on new high producing wells

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Response to turbinetree (Original post)

Tue Aug 27, 2019, 09:42 PM

2. If BP is selling b/c declining revenue


I am wondering what Hilcorp is getting from the sale?

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Response to dixiegrrrrl (Reply #2)

Tue Aug 27, 2019, 09:49 PM

3. Pump it dry and then lease it out for gold mining. Just a guess. nt

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Response to turbinetree (Original post)

Wed Aug 28, 2019, 10:34 PM

5. They've stolen all the money there is to steal...

... time to get out.

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