Aug 27, 2019

BP to exit Alaska in $5.6 billion deal with Hilcorp

BP's North Star oil station in North Slope, Alaska. Photo: Damian Gillie/Construction Photography/Avalon/Getty Images

BP is selling its oil-and-gas assets in Alaska to Hilcorp Alaska in a $5.6 billion deal that will end its decades-long run as a huge player in the state.

Why it matters: It's a stark sign of the oil giant's repositioning, including its increasing presence in the shale patch in the Lower 48. BP bought BHP's Billiton's U.S. shale assets last year in a $10.5 billion deal.

The big picture: "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)," the announcement states.

What they're saying: BP CEO Bob Dudley said the move is part of "steadily reshaping BP and today we have other opportunities, both in the U.S. and around the world, that are more closely aligned with our long-term strategy and more competitive for our investment."

  • The oil giant said it expects the transaction to be completed in 2020.

Go deeper: The shale boom has become a check on the market's long-term volatility

Go deeper

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Updated 2 hours ago - Politics & Policy

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The CDC is warning of potentially "aggressive rodent behavior" amid a rise in reports of rat activity in several areas, as the animals search further for food while Americans stay home more during the coronavirus pandemic.

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World coronavirus updates

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Japan's economy minister outlined plans on Monday to end the nationwide state of emergency as the number of new novel coronavirus cases continues to decline to fewer than 50 a day, per Bloomberg. Japan has reported 16,550 cases and 820 deaths.

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