BP Agrees to Sale of Interests in Four Alaska North Slope Assets

22 April 2014--BP today announced that it has agreed to sell interests in four BP-operated oilfields on the North Slope 
of Alaska to Hilcorp. The sale agreement includes all of BP’s interests in the Endicott and Northstar oilfields and a 50 
percent interest in each of the Liberty and the Milne Point fields. The sale also includes BP’s interests in the oil and gas 
pipelines associated with these fields.

“This agreement will help build a more competitive and sustainable business for BP in Alaska” said BP Upstream 
Chief Executive Lamar McKay. “It will allow us to play to two of our great strengths, managing giant fields and gas value 
chains. We will now concentrate on continuing development and production from the giant Prudhoe Bay field and 
working to advance the future opportunity of Alaska LNG.“

The agreement does not affect BP’s position as operator and co-owner of the Prudhoe Bay oilfield nor its other 
interests in Alaska. BP also expects to submit a development plan for Liberty by the end of 2014. As a result of the sale 
and subject to approval, Hilcorp is expected to become the operator of the Endicott, Northstar and Milne Point oilfields 
and their associated pipelines and infrastructure.

“There are some big benefits from this transaction,” said Janet Weiss, President of BP’s Alaska Region. “BP will be 
able to focus on maximizing production from Prudhoe Bay and advancing the Alaska LNG opportunity. Hilcorp takes 
ownership of two mature oil fields ready for new investment and activity, and it will operate a third field that is primed for 
accelerated production. And, the state gets another accomplished operator working the North Slope. Thanks to tax 
reform, Alaska is now on course for increased investment and production and even the possibility of LNG.”

BP remains committed to its plans for increased investment at Prudhoe Bay, which have resulted from recent oil tax 
reform by the State of Alaska. The plans include adding two drilling rigs, one in 2015 and a second in 2016, for a total 
incremental $1 billion investment over five years. These activities are expected to account for 200 Alaska jobs and 30
-40 additional wells being drilled each year, bringing a boost to both the company’s operations and the state’s 
economy.

Approximately 250 employees are associated with the assets included in the agreement and the company is 
committed to providing clarity about their future as soon as possible. The majority of those BP employees at or 
supporting Milne Point, Endicott and Northstar are expected to be offered positions with Hilcorp with no break in 
employment.

Together the assets included in the sale represent approximately 19,700 barrels of oil equivalent a day (boe/d) of net 
production for BP, less than 15 percent of BP’s total net production on the North Slope.

The sale, which will be subject to state and federal regulatory approval, is anticipated to be complete by the end of the 
year. Financial details of the transaction are not being disclosed.

Source: http://www.bp.com/en/global/corporate/press/press-releases/bp-agrees-sale-interests-alaska-north-slope.html