BP is to sell off its stakes in four Alaskan oilfields to a private firm as it looks to refocus on a key project in the country.
The company said it had struck an undisclosed deal with Hilcorp to sell its full interests in the Endicott and Northstar oil fields, along with its 50% stakes in the Liberty and Milne Point projects.
The sale, which still requires approval from US authorities, represents around 19,700 barrels of oil equivalent per day. Hilcorp will take over as operator of the Endicott, North Star and Milne Point fields.
The move comes as the British oil supermajor turns its focus to LNG developments in the country, and to its giant Prudhoe Bay field.
“This agreement will help build a more competitive and sustainable business for BP in Alaska” said 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 Prudhoe Bay project, around 650 miles north of Anchorage, is the one of the largest oil fields in the world and produces more than 500,000 barrels of oil per day.
Eight years ago it was the site of Alaska’s largest oil spill, with up to 267,000 gallons of oil in the bay.
BP said it was committed to its plans for up to $1billion investment in the project, which is set for two new drilling drilling rigs in the next two years.
Around 250 jobs are expected to be included in the asset sale to Hilcorp, with the companies saying the majority of those are expected to be offered positions with the new firm.
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