ConocoPhillips, BP Reach Deal to Trade Energy Assets
July 03 2018 - 5:50PM
Dow Jones News
By Micah Maidenberg
ConocoPhillips and BP are trading petroleum assets.
Houston-based ConocoPhillips (COP) said it will buy BP PLC's
(BP) 39.2% interest in the Greater Kuparuk Area, an oil field
located 40 miles west of Prudhoe Bay on Alaska's northern coast, as
well as BP's 38% share of a pipeline operator, the Kuparuk
Transportation Company.
At the same time, ConocoPhillips will sell BP a subsidiary that
will hold a 16.5% share of the Clair Field, which is around 46
miles west of the Shetland Islands off Scotland. ConocoPhillips
will retain a 7.5% interest in the Clair, down from the 24% stake
it said it owned in its last annual report.
For ConocoPhillips, the deal is the second transaction this year
that boosts its footprint in Alaska. Last month, the company closed
on a $400 million deal for Anadarko Petroleum's 22% lease interests
in a field on the Western North Slope in the state. This deal will
give the firm more than 90% control of the Greater Kuparuk
Area.
Prices for the latest transactions weren't disclosed. Both are
expected to be "cash neutral" for both companies, ConocoPhillips
said in a statement.
"These transactions are significant for ConocoPhillips because
they continue our strategy of coring up our legacy asset base in
Alaska, while retaining an interest in the Clair Field in the
U.K.," said Ryan Lance, chairman and chief executive officer.
The deals are conditional on each other, and expected to close
simultaneously pending regulatory approval.
A spokesman for ConocoPhillips declined to make further comment
on the deal. A spokesmen for BP couldn't be reached.
The 39.2% interest in Greater Kuparuk Area had proved reserves
associated with it of 190 million barrels of oil equivalent at the
end of last year and produced 38,000 BOE a day, according to
ConocoPhillips. The 16.5% interest in the Clair Field had 40
million BOE of proved reserves associated with it and produced
about 3,000 BOE a day.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
July 03, 2018 17:35 ET (21:35 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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