April 22, 2014 / 10:32 PM / in 4 years

BP sells interests in four Alaska oilfields for undisclosed sum

April 22 (Reuters) - British oil and gas major BP Plc said on Tuesday it sold its interests in four oilfields on the Alaska North Slope for an undisclosed sum to privately held oil and gas producer Hilcorp.

BP, which is one of the largest oil producers in Alaska, said the sale included BP’s interests in the Endicott and Northstar oilfields and a 50 percent interest in each of the Liberty and the Milne Point fields. It also included BP’s interests in the pipelines associated with the fields.

The company said the fields accounted for about 19,700 barrels of oil equivalent a day, less than 15 percent of BP’s total net production on the North Slope.

BP-operated oil fields account for two-thirds of all Alaska production.

The company said it would focus on developing Prudhoe Bay, the largest oil field in North America, and pursue LNG opportunities in Alaska.

“This agreement will help build a more competitive and sustainable business for BP in Alaska,” BP Upstream Chief Executive Lamar McKay said in a statement.

BP said the deal does not affect its position as operator and co-owner of Prudhoe Bay nor its other interests in Alaska.

Hilcorp is expected to become the operator of Endicott, Northstar and Milne Point and their associated pipelines and infrastructure.

BP said about 250 employees were associated with the assets it was selling. It said the majority of those workers at or supporting Milne Point, Endicott and Northstar were expected to be offered positions with Hilcorp with no break in employment.

The sale, which is subject to regulatory approval, is expected to be completed by the end of the year. (Reporting by Karen Rebelo in Bangalore)

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