BP buys ConocoPhillips’ Clair field share; sells Alaska Kuparuk stake

BP buys ConocoPhillips’ Clair field share; sells Alaska Kuparuk stake

6:29 AM, 4th July 2018
BP buys ConocoPhillips’ Clair field share; sells Alaska Kuparuk stake
BP's Clair Ridge platform.

LONDON, UK: BP plc has entered into agreements with ConocoPhillips that will significantly increase its holding in the Clair field, a core asset of BP’s North Sea business in the UK, while also selling its non-operating interest in the Kuparuk and satellite oilfields in Alaska.

BP has entered into an agreement to purchase from ConocoPhillips a 16.5 percent interest in the BP-operated Clair field, west of Shetland in the UK, buying a ConocoPhillips subsidiary that will hold this interest in the field. As a result, BP will hold a 45.1 percent interest in Clair and ConocoPhillips will retain a 7.5 percent interest.

Separately BP has entered into agreements to sell to ConocoPhillips BP’s entire 39.2 percent interest in the Greater Kuparuk Area on the North Slope of Alaska as well as BP’s holding in the Kuparuk Transportation Company.

The transactions are anticipated to complete in 2018.

The giant Clair field west of Shetland has a complex fractured reservoir estimated to have had more than 7 billion barrels of hydrocarbons originally in place. The field is operated by BP which currently holds a 28.6 percent interest. Production from Clair’s first phase of development began in 2005 and the field produced an average of 21,000 barrels of oil equivalent a day (boed) in 2017. A major second development phase, Clair Ridge, is expected to start production later this year with production capacity of 120,000 boed. Appraisal has also identified potential for future stages of development of Clair.

The Greater Kuparuk Area is operated by ConocoPhillips Alaska. The Greater Kuparuk Area includes the Kuparuk oilfield and the satellite fields of Tarn, Tabasco, Meltwater and West Sak. In 2017, the Greater Kuparuk Area had average daily gross oil production of approximately 108,000 barrels a day. The agreement will also include BP’s interest in the Kuparuk pipeline, which transports oil from the Greater Kuparuk Area to the inlet of the Trans-Alaska Pipeline (TAPS) at Pump Station 1.

The transaction will not affect BP’s position as operator and co-owner in the Prudhoe Bay oilfield in Alaska. 

“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,” said Bernard Looney, BP Upstream chief executive.

“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,” he added.

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