BP has entered into an agreement with Hilcorp to sell its interests in four oilfields located on the Alaska North Slope. The sale agreement includes all of BP's interests in the Endicott and Northstar oilfields and 50% 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.
Endicott field details
· Covers 16,960 acres
· Production, as of 31-Dec-2012, of 9.6 MBOE/d (5.8 MBOE/d net to BP)
· Gross OOIP of 1 Bbbl and OGIP of 1 Tcf
· Post transaction ownership: Hilcorp (67.9%, operator), ExxonMobil (21%), Chevron (10.5%) and Others (0.6%)
Northstar field details
· Covers 17,667 acres
· Production, as of 31-Dec-2012, of 8.3 MBOE/d (6 MBOE/d net to BP)
· Gross OOIP of 310 MMbbl and OGIP of 761 Bcf
· Post transaction ownership: Hilcorp (98.6%, operator) and Murphy Oil (1.4%)
Milne Point field details
· Covers 66,651 acres and located about 25 miles west of Prudhoe Bay
· Production of 17.5 MBOE/d
· Gross OOIP of 8.9 Bbbl and OGIP of 613 Bcf
· Post transaction ownership: Hilcorp (50%, operator) and BP (50%)
BP Upstream Chief Executive Lamar McKay commented: "This agreement will help build a more competitive and sustainable business for BP in Alaska. 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."
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.