State approves Kuparuk River unit transfer

Kristen Nelson

Petroleum News

The Alaska Division of Oil and Gas said Nov. 13 that it has approved lease assignments from BP Exploration (Alaska) Inc. to ConocoPhillips Alaska II Inc., a subsidiary of ConocoPhillips Alaska Inc., for the Kuparuk River unit.

The companies said July 3 that ConocoPhillips was acquiring BP’s 39.2 percent interest in the Greater Kuparuk area and BP’s 38 percent interest in the Kuparuk Transportation Co. for an undisclosed price and was selling BP a subsidiary with a 16.5 percent interest in the Clair field in the United Kingdom.

The Kuparuk area acquisition was subject to co-owner pre-emption rights and regulatory approval.

In the decision on the assignment of Kuparuk oil and gas leases Division Director Chantal Walsh said BP applied to assign its interests July 17 to ConocoPhillips Alaska II Inc., a wholly owned subsidiary of ConocoPhillips Alaska. Walsh said CPAI has agreed to certain conditions, set out in a guaranty agreement dated Nov. 8 and effective July 1, the effective date of the BP-CPAI purchase and sale agreement for acquisition of BPXA’s “entire working interest in the Kuparuk River Unit and certain other non-unitized leases.”

ConocoPhillips was already the majority working interest owner at Kuparuk, with 55.3 percent interest, and the operator. Other interest owners include Chevron at 4.9 percent and ExxonMobil at 0.6 percent. Acquisition of BP’s interests gives ConocoPhillips a 94.5 percent interest in Kuparuk.

Earlier in the year ConocoPhillips closed on a $400 million acquisition of Anadarko Petroleum’s 22 percent interests in western North Slope properties, including the Colville River unit and Greater Mooses Tooth. That purchase had an effective date of Oct. 1, 2017.

- KRISTEN NELSON