BP’s sale to Hilcorp pegged at $1.25B

When the sale of certain BP North Slope assets to Hilcorp Alaska was announced April 22, financial details were not disclosed.

But in an April 29 first quarter analysts’ call, BP executives said the sale brought in $1.25 billion.

Brian Gilvary, BP’s chief financial officer, said the sale was part of a plan announced to October to divest a further $10 billion in assets by the end of 2015. In 2013 BP completed a $38 billion divestment program.

“So far we have signed deals worth over $3 billion against this commitment,” he said, referring to the $10 billion. “This includes the recently announced sale of a package of assets in the Alaskan North Slope for $1.25 billion.”

Bob Dudley, BP’s group chief executive, noted that in addition to the $1.25 billion, the sale included “a development carry for the Liberty field of up to $250 million”; that would bring the total to $1.5 billion.

Echoing statements BP made at the time the sale to Hilcorp was announced, Dudley said: “This deal will concentrate our operating footprint and we expect it to drive higher activity into the basin. This enables us to focus more intensely on maximizing production from Prudhoe Bay, North America’s largest oil field, as well as progressing the Alaska LNG opportunity.”

Assets acquired by Hilcorp in the sale, which is subject to state and federal regulatory approvals is expected to close at the end of the year, include all of BP’s interests in the Endicott and Northstar oil fields and a 50 percent interest in Liberty and Milne Point. BP’s interests in oil and gas pipelines associated with those fields are also included.

—Kristen Nelson