BP recently announced that it has entered into agreements with ConocoPhillips that will significantly increase its holding in the Clair field, a core asset of BP’s North Sea business in the UK, while also selling its non-operating interest in the Kuparuk and satellite oilfields in Alaska.
BP will purchase from ConocoPhillips a 16.5% interest in the BP-operated Clair field, west of Shetland in the UK, buying a ConocoPhillips subsidiary that will hold this interest in the field. As a result, BP will hold a 45.1% interest in Clair and ConocoPhillips will retain a 7.5% interest.
Separately BP will sell its entire 39.2% interest in the Greater Kuparuk Area on the North Slope of Alaska to ConocoPhillips as well as BP’s holding in the Kuparuk Transportation Company.
Details of the transactions are not being disclosed but, excluding customary adjustments, the transactions together are expected to be cash neutral for BP and ConocoPhillips. The transactions, which will be subject to State of Alaska, US federal and UK regulatory approvals and other approvals, are anticipated to be completed in 2018.
The transaction will not affect BP’s position as operator and co-owner in the Prudhoe Bay oilfield in Alaska.
