By Daniel Gilbert
BP PLC is selling stakes in four Alaska North Slope oil fields
to Hilcorp Energy Co., ratcheting down its investment in a region
it helped pioneer as the oil company seeks to raise cash.
The London-based company said on Tuesday it would sell interests
to the closely held Houston-based company. The companies didn't
release financial terms of the deal, but a BP spokesman said the
company "secured good value for these interests."
Hilcorp called the purchase a major acquisition for the
company--its third in Alaska since 2012.
"Our ability to bring new life to mature basins is a great fit
for these assets," John Barnes, a senior vice president at Hilcorp,
said in a statement.
For BP, long a major player in Alaska, the sale marks a
narrowing focus as it seeks to raise $10 billion in cash, with most
funds earmarked to buy back shares. BP's stock plunged after the
Deepwater Horizon disaster and oil spill in April 2010 and has yet
to recover its value from before the deadly explosion. The company
will focus its efforts on tapping crude oil from Prudhoe Bay and
exporting natural gas, Lamar McKay, head of BP's oil and gas
development business, said.
"This agreement will help build a more competitive and
sustainable business for BP in Alaska," Mr. McKay said.
BP is selling all of its interests in the Endicott and Northstar
fields, and 50% of its stake in the Liberty and Milne Point fields.
The company is also selling its interest in the pipelines that ship
oil and gas from those properties.
Hilcorp has expanded its holdings in Alaska in recent years,
buying properties in Cook Inlet from Marathon Oil Corp. and Chevron
Corp.
Maria Armental contributed to this article.
Write to Daniel Gilbert at daniel.gilbert@wsj.com
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