POST Online Media Lite Edition



 

BP sells Alaska business to Hilcorp for $5.6 billion

Christian Fernsby |
BP announced that it has agreed to sell its entire business in Alaska to Hilcorp Alaska, based in Anchorage, Alaska.

Article continues below



Topics: HILCORP    ALASKA   

Under the terms of the agreement, Hilcorp will purchase all of BP's interests in the state for a total consideration of $5.6 billion.

The sale will include BP's entire upstream and midstream business in the state, including BP Exploration (Alaska) Inc., that owns all of BP's upstream oil and gas interests in Alaska, and BP Pipelines (Alaska) Inc.'s interest in the Trans Alaska Pipeline System (TAPS).

Under the terms of the agreement, Hilcorp will pay BP a total consideration of $5.6 billion, comprising $4.0 billion payable near-term and $1.6 billion through an earnout thereafter. Subject to state and federal regulatory approval, the transaction is expected to be completed in 2020. The deal forms a significant part of BP's plan to divest $10 billion of assets over 2019 and 2020.


What to read next

Alaska Airlines 'Proudly All Boeing' for $5 billion
Alaska Airlines introduces new nonstop lines
Alaska Air Group cleared by DOJ to acquire Virgin America