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BP sells exploration acreage in NPR-A, Brooks Range Foothills
Kristen Nelson and Kay Cashman, Petroleum News staff
BP Exploration (Alaska) spokesman Daren Beaudo told Petroleum News April 30 that the company has sold its acreage in the National Petroleum Reserve-Alaska and in the Brooks Range Foothills on Alaska’s North Slope.
Beaudo said the sales were effective Dec. 31.
BP sold its NPR-A acreage to ConocoPhillips Alaska and its foothills acreage to Anadarko Petroleum.
BP's net acreage in NPR-A was 116,500 acres out of a gross position of some 233,000 acres with partners ConocoPhillips and ChevronTexaco.
In the foothills, of 1.2 million gross acres of Arctic Slope Regional Corp. land, BP's net acreage was 401,700 acres.
Gross state foothills acreage is 230,000 acres, 76,700 acres net to BP. Partners in the ASRC acreage were Anadarko, who first struck the exploration deal with ASRC, and EnCana. One million acres for sale The net exploration acreage sold by BP in the foothills and NPR-A was 594,900 acres. Together with the 400,000-plus exploration acres BP is offering outside of the NPR-A, foothills and the Arctic National Wildlife Refuge, the company will be selling approximately 1 million exploration acres on the North Slope.
“Selling these leases has two effects: to spur and accelerate new investment and production on the North Slope by other companies, including independents” and to keep BP's North Slope focus “on commercializing billions of barrels of known resources in its Alaskan portfolio,” Beaudo said.
He said the NPR-A and foothills sale is “consistent with BP's plans” to focus on resources in and around existing fields and near existing infrastructure, where the company has had the greatest success.
“Stimulating new exploration and production on BP acreage is good for the state (new source of revenues), good for Alaskans (jobs, business opportunities), good for BP (additional TAPS throughput, greater efficiency from existing infrastructure) and good for the long-term health of the North Slope oil and gas industry,” Beaudo said. Bid closing on 400,000 acres moved to May 6 Bid closing for the 400,000-plus acres was originally set for April 30, but Beaudo confirmed the deadline had been moved to May 6.
BP said last year that the oil and gas leases were being offered to 15 oil companies, including independents, “positioned to prospect the leases.”
Beaudo said it was BP's intent to evaluate bids and notify successful bidders as soon as possible — in “one to two weeks to give the successful bidders as much time as possible in advance of fall lease sales.”
BP’s ANWR acreage is not up for sale, he said.
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