The Regulatory Commission of Alaska (United States) has conditionally approved Hilcorp’s acquisition of BP’s 49% stake in the Trans Alaska Pipeline System (TAPS). The Commission demanded a filing stating BP accepts initial responsibility to be charged for any dismantlement, removal and restoration costs for what has been its share of the trans-Alaska pipeline.
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 TAPS. In April 2020, BP and Hilcorp amended the terms of the US$5.6bn sale of BP's assets in Alaska – whose value remains unchanged – adjusting the structure and phasing of payments. 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. In July 2020, Hilcorp took over management of Prudhoe Bay oil field in Alaska, after the state regulators authorised BP to transfer its upstream assets, which includes 176 oil and gas leases on the North Slope, and in more than 250 surface-use permits. With this acquisition, Hilcorp became the second-largest oil producer in Alaska.