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NEWS BULLETIN

May 07, 2018 --- Vol. 24, No.10May 2018

BP, AGDC sign gas sales precedent agreement

BP Alaska and the Alaska Gasline Development Corp. said they have agreed to key terms of a gas sales agreement, including price and volume, with terms captured in a gas sales precedent agreement signed May 4.

The parties said in a press release this morning that they anticipate finalizing a long-term gas sales agreement this year, under which AGDC would purchase BP Alaska's share of 30 trillion cubic feet of natural gas from the Prudhoe Bay and Point Thomson units.

BP is the Prudhoe operator and owns a 26 percent share of that field as well as a 32 percent share of the Point Thomson field.

"BP has a long history in Alaska and Prudhoe Bay," BP Chief Executive Bob Dudley said in the joint statement. "We are very pleased to be part of the State's vision to bring Alaskan natural gas to new and expanding markets globally. We think this is good for the State, good for BP and good for the environment."

"The Alaska LNG project has made significant progress over the past year, and BP is pleased to sign this agreement," said Janet Weiss, BP Alaska president. "This is an important project for the future of the Alaska oil and gas industry."

Earlier this year President Donald Trump and President Xi Jinping of China witnessed the signing in Beijing of the five-party joint development agreement to monetize Alaska's natural gas.

AGDC President Keith Meyer called the agreement "a significant factor in progressing the Alaska LNG Project. We have secured the customers, we have progressed on the pipeline build with regulators and the finance community and now we have a commitment that there will be gas to sell and put through the pipeline. I look forward to continued negotiations to secure supply from the other North Slope producers."

Gov. Bill Walker said the "agreement means Alaskans are one step closer to cleaner air, more jobs and more affordable energy to power homes and businesses. Having BP, one of our longtime partners on this project, commit its share of the gas for sale underscores the progress we continue to make as we work toward building a stronger Alaska."

- Petroleum News

Editor's note: See story in May 13 issue, available online Friday, May 11 at www.PetroleumNews.com

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