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BP To Sell Entire Business In Alaska To Hilcorp Alaska For $5.6 Bln

BP Plc. (BP.L,BP_UN.TO,BP) said Tuesday that it agreed to sell its entire business in Alaska to a privately held oil and natural gas exploration and production company Hilcorp Alaska for $5.6 billion, as a part of its plan to divest $10 billion of assets over 2019 and 2020.

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.

Hilcorp will pay BP $4.0 billion in the short term and a $1.6 billion earnout from the assets afterward, the company said. The transaction is expected to be completed in 2020.

BP said it will provide clarity about 1,600 employees, who are currently associated with its Alaska business, future as soon as possible.

BP began working in Alaska in 1959, drilling the confirmation well for the Prudhoe Bay oilfield in 1968 and in the mid-1970s helped build the 800-mile Trans Alaska Pipeline. BP began producing oil from Prudhoe Bay in 1977.

In late 2018, BP acquired a portfolio of onshore US oil and gas interests from BHP for $10.5 billion. BP also continues to develop its business in the deepwater Gulf of Mexico, bringing on a series of new projects on its major producing assets. The new $9 billion Argos platform on the Mad Dog field is expected on stream in 2021.

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