BP said Wednesday it has agreed to sell interests in four BP-operated oilfields on the North Slope of Alaska to Hilcorp.
The sale includes all of BP’s interests in the Endicott and Northstar oilfields and a 50 percent interest in each of the Liberty and the Milne Point fields.
Also included is BP’s interest in the oil and gas pipelines associated with these fields.
BP Upstream Chief Executive Lamar McKay said , “We will now concentrate on continuing development and production from the giant Prudhoe Bay field and working to advance the future opportunity of Alaska LNG.“
The agreement does not affect BP’s position as operator and co-owner of the Prudhoe Bay oilfield nor its other interests in Alaska, the company said.
BP said it expects to submit a development plan for Liberty by the end of 2014.
After the sale closes, “Hilcorp is expected to become the operator of the Endicott, Northstar and Milne Point oilfields and their associated pipelines and infrastructure,” BP said.
The sale could impact about 250 employees associated with the assets, BP said.
Financial terms weren’t disclosed.
“The majority of those BP employees at or supporting Milne Point, Endicott and Northstar are expected to be offered positions with Hilcorp with no break in employment,” BP said.
The assets being sold represent 19,700 barrels of oil equivalent a day (boe/d) of net production for BP, less than 15 percent of BP’s total net production on the North Slope.
The sale needs state and federal regulatory approval.
It’s expected to be completed by year end.