ConocoPhillips will add to its asset base in Alaska and sell partial interest in a UK North Sea asset as part of interconditional transactions expected to close simultaneously.
In the first of simultaneous agreements, a ConocoPhillips subsidiary will be sold to BP PLC. The subsidiary will hold a 16.5% interest in the BP-operated Clair oil and gas field in the West of Shetlands area offshore the UK. ConocoPhillips will retain a 7.5% interest. The purchase price was undisclosed.
Additionally, ConocoPhillips agreed to acquire BP’s 39.2% interest in the Greater Kuparuk area in Alaska and BP’s 38% interest in the Kuparuk Transportation Co. The purchase price was undisclosed.
Full-year 2017 production and yearend 2017 proved reserves associated with the 16.5% interest in Clair field were 3,000 boe/d and 40 million boe, respectively. Full-year 2017 production and yearend 2017 proved reserves associated with the 39.2% interest in the Greater Kuparuk area were 38,000 boe/d and 190 million boe, respectively.
The Greater Kuparuk area acquisition is subject to co-owner preemption rights and both acquisitions are subject to regulatory approval. Excluding customary adjustments, the transaction prices are expected to be cash neutral to both companies. The effective date for the transactions will be July 1.