Houston-based private oil & gas producer Hilcorp has agreed to acquire BP’s Alaska business for $5.6 billion consisting of $4 billion payable near-term and $1.6 billion payable through earnouts. The deal adds 74,000 boe/d from a number of fields including a 26% interest in Prudhoe Bay. “BP was a pioneer in Alaskan drilling and one of the key players in building the Alaskan oil industry, including drilling the confirmation well for the massive Prudhoe Bay field in the 1960s and participating in the Trans Alaska Pipeline in the 1970s,” said Enverus Senior M&A Analyst, Andrew Dittmar. “Their exit and replacement by Hilcorp marks a changing of the guard for the Alaskan petroleum industry.” For Hilcorp, buying BP’s assets, including assuming operatorship of Prudhoe Bay, is a crowning achievement to the Alaska business they have built since 2012 to become the largest private operator in the state with more than 75,000 boe/d gross operated production. The deal additionally extends Hilcorp’s lead as the largest private producer in the United States based on gross operated production, which stood at just over 610,000 boe/d as of the end of July 2019. Alaska has played an instrumental role in Hilcorp’s remarkable growth including an… continue reading
Continue reading BP Divests Alaska Business to Hilcorp for $5.6 Billion. This article appeared first on CTRM Center.
Source: CTRM Center