BP and Hilcorp have amended the terms of the US$5.6bn sale of BP's assets in Alaska (United States) - whose value remains unchanged - adjusting the structure and phasing of payments.
In August 2019, BP agreed to sell its entire oil and gas business in Alaska to Hilcorp for a total consideration of US$5.6bn. The transaction includes all of BP's upstream and midstream activities in Alaska, including BP Exploration, its upstream oil and gas company that holds interests in the giant Prudhoe Bay field, and BP Pipelines that owns interests in the Trans Alaska Pipeline System (TAPS).
Under the original agreement, Hilcorp paid BP a US$500m deposit on signing of the transaction in August 2019 and the group had to pay BP US$4bn near-term and US$1.6bn through an earnout thereafter. Under the revised agreement, Hilcorp will make lower payments in 2020 and will have more flexibility to phase and manage payments to accommodate current and potential future volatility in oil prices. The transaction is expected to be completed in 2020.