On 27 August 2019, BP announced it had agreed to sell its entire Alaska business to Hilcorp Alaska for USD 5.6 billion. According to the BP press release, the sale includes BP Exploration (Alaska) which owns all of BPâs upstream oil and gas interests in the state, as well as BP Pipelines (Alaska) which owns BPâs interest in the Trans Alaskan Pipeline System (TAPS). Hilcorpâs total consideration will include USD 4.0 billion payable near-term and USD 1.6 billion through an earnout thereafter. The transaction is expected to be completed in 2020, subject to state and federal regulatory approval.  BP, active in the state since 1959, expects its net oil production to average about 74,000 bopd in 2019. This includes production from its 26% operated interest in the Prudhoe Bay field, which came online in 1977 and has produced over 13 billion bbl of oil, with potential to produce an additional 1 billion bbl. BP also owns non-operated interests in the producing Milne Point and Point Thompson fields, as well as non-operated interests in the Liberty project and exploration lease interests in the Arctic National Wildlife Refuge (ANWR). BPâs net holdings in the state comprise 736 sq km (181,870 acres)  Having operated in Alaska since 2012, Hilcorp is the largest privately-owned oil and gas operator in the state with over 75,000 boe/d gross production. The company previously purchased interests from BP in four operated North Slope fields in 2014. Hilcorpâs net holdings in the state comprise 2014 sq km (497,670 acres).  Harvest Midstream, Hilcorpâs pipeline subsidiary, will assume BPâs midstream assets which include the 49% interest in the 800-mile Trans-Alaskan Pipeline System.
Privately held Hilcorp has agreed to aquire entire BPâs business in Alaska for US$5,6 billion.