BP and ConocoPhillips have come up with an assets swap deal with the former to raise its stake in the Clair oilfield in the UK North Sea while divesting its entire stake in the Kuparuk River oilfield and satellite oilfields in Alaska, US.

BP-Clair oilfield

Image: BP will raise its stake in the Clair oilfield in offshore UK. Photo: courtesy of BP p.l.c.

In the Clair oilfield, BP, which is already the operator of the offshore oilfield, will buy an additional stake of 16.5% from ConocoPhillips for an undisclosed price. Following the transaction, BP will raise its stake to 45.1% in the North Sea oilfield while ConocoPhillips will have a reduced stake of 7.5%.

In the US, BP has agreed to offload its entire stake of 39.2% in the Greater Kuparuk Area on the North Slope of Alaska and also its stake in Kuparuk Transportation to operator ConocoPhillips.

Financial terms of all the transactions were not disclosed by the parties. However, the transactions after omitting the customary adjustments are anticipated to be cash neutral for both the parties.

BP upstream CEO Bernard Looney said: “This is a further step in focusing our portfolio around core assets and developments which have the potential for significant growth. Clair is a key advantaged oilfield for our North Sea business, a giant resource whose second phase is about to begin production and which holds great potential for future developments.

“In Alaska, this transaction will increase our focus on managing our deep resource base at the massive Prudhoe Bay oilfield and help enable a more competitive and sustainable business for BP.”

ConocoPhillips said that the Greater Kuparuk Area acquisition will depend on co-owner pre-emption rights. The company and its partners in the Kuparuk field had invested over $5.6bn to develop the field and optimize oil recovery.

ConocoPhillips chairman and CEO Ryan Lance said: “We have a long history of creating value in Alaska and an ongoing commitment to invest in our legacy assets, as well as in the development of our recent exploration success.

“Likewise, we are committed to maximizing the value of our assets in the U.K. North Sea, including continued investment in our operated assets in the Central North Sea.”

The transactions relating to the Clair oilfield in the UK and the Kuparuk River oilfield and satellite oilfields in the US are expected to be completed in 2018 and will be subject to relevant regulatory and other approvals in the two countries.