BP, Oxy finalize deal on Alaska, New Mexico assets

Petroleum News Alaska Staff

BP said Oct. 24 that it and Occidental Petroleum Corp. have finalized terms of an agreement in which Occidental will acquire BP’s interests in the Bravo Dome carbon dioxide field in northeastern New Mexico and related pipeline infrastructure. BP will acquire Occidental’s 9 percent interest in the Milne Point oil field on Alaska’s North Slope. Terms were not disclosed.

The deal will give Occidental ownership of a key source of carbon dioxide used to enhance recovery from recently acquired oil and gas properties in the Permian Basin in western Texas while providing BP with increased production and reserves and greater flexibility in pursuing additional development at Milne Point.

Occidental acquired BP’s and Shell’s interests in a number of producing oil and gas properties in western Texas and southeastern New Mexico earlier this year with its acquisition of Altura Energy.

BP acquired its 91 percent interests in the Milne field and pipeline in 1994. Since then, with nearly $1 billion in investments in exploration, development and technology, daily production has increased from less than 20,000 barrels a day to more than 50,000 barrels. Estimated ultimate recovery has also increased from about 100 million barrels to more than 400 million barrels.