RCA approves 3 percent pipeline ownership transfer from BP to Phillips

The Regulatory Commission of Alaska has approved the transfer of a 3.0845 percent interest in trans-Alaska oil pipeline assets and terminal tankage from BP Pipelines (Alaska) Inc. to Phillips Transportation Alaska Inc.

Kristen Nelson

The RCA order of Oct. 15 also amends certificates of public convenience and necessity.

After the transaction, BP will own 46.9263 percent of pipeline assets and 46.0955 percent of terminal tankage; Phillips will own 26.7953 percent of pipeline assets and 25.774 percent of terminal tankage.

The RCA said that the state supported the transfer and that there were no protests.

The transfer is a result of Phillips’ acquisition of the assets of ARCO Alaska Inc. and of the alignment of oil and gas interests in the Prudhoe Bay unit which occurred as a result of the sale.

“Before either of these events,” the RCA said, “ARCO had more production than it could ship on its share” of the pipeline. Phillips Petroleum had a small share of the pipeline which it used to ship its own North Slope production.

This commission said the purchase by Phillips allows it to ship “much, but not all, of the production it gained under the PBU Alignment Agreement.”