BP has sold its entire Alaskan business, including interests in giant Prudhoe Bay field and Trans Alaska Pipeline to Hilcorp for $5.6 billion.
The sale includes BP's entire upstream and midstream business in the state, including BP Exploration, that owns all of BP's upstream oil and gas interests in Alaska, and BP Pipelines' interest in the Trans Alaska Pipeline System.
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.
Bob Dudley, BP group chief executive, says: 'Alaska has been instrumental in BP's growth and success for well over half a century and our work there has helped shape the careers of many throughout the company. We are extraordinarily proud of the world-class business we have built.
'However, we are steadily reshaping BP and today we have other opportunities, both in the US and around the world, that are more closely aligned with our long-term strategy and more competitive for our investment. This transaction also underpins our two-year $10 billion divestment programme, further strengthening our balance sheet and enabling us to pursue new advantaged opportunities for BP's portfolio within our disciplined financial framework.
'As a highly-capable operator with extensive Alaskan experience, Hilcorp is ideally-placed to take this important business on into the future, continuing to optimise its performance and maximise its value for the state of Alaska.'
He adds: 'Our exit from Alaska does not in any way diminish BP's commitment to America. We remain very bullish on the US energy sector. In just the last three years we have investment more than $20 billion in the US and we will continue to look at further investment opportunities here.'
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