ConocoPhillips and BP said in announcements today that ConocoPhillips is acquiring BP's 39.2 percent interest in the Great Kuparuk area, and BP's 38 percent interest in the Kuparuk Transportation Co. for an undisclosed price and selling to BP a subsidiary with a 16.5 percent interest in the Clair Field in the United Kingdom. The Clair Field sale is subject to regulatory approval; the Greater Kuparuk area acquisition is subject to co-owner pre-emption rights and both Kuparuk acquisitions are subject to regulatory approval.
ConocoPhillips said the transactions are inter-conditional and expected to close simultaneously. Excluding customary adjustments, the transaction prices are expected to be cash neutral to both companies. The effective date will be July 1.
"These transactions are significant for ConocoPhillips because they continue our strategy of coring up our legacy asset base in Alaska, while retaining an interest in the Clair Field in the U.K.," said ConocoPhillips Chairman and CEO Ryan Lance. "We have a long history of creating value in Alaska and an ongoing commitment to invest in our legacy assets, as well as in the development of our recent exploration success," Lance said.
"This is a further step in focusing our portfolio around core assets and developments which have the potential for significant growth," said BP Upstream Chief Executive Bernard Looney.
"In Alaska, this transaction will increase our focus on managing our deep resource base at the massive Prudhoe Bay oilfield and help enable a more competitive and sustainable business for BP," Looney said.
- KRISTEN NELSON
See story in July 8 issue, available online Friday, July 5 at www.PetroleumNews.com
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