BP: sells its entire business in Alaska
(CercleFinance.com) - BP has agreed to sell its entire business in Alaska to Hilcorp, currently the largest private oil and gas operator in the State, for a price of 5.
6 billion dollars.
The sale includes BP's upstream and midstream business, including BP Exploration Alaska, which owns all of BP's upstream oil and gas interests in Alaska, as well as its pipelines.
The deal is part of BP's plan to divest 10 billion dollars of assets over 2019 and 2020.
"This is an important step in the near-term equity story for BP and will help to drive gearing back towards target levels," analysts at Berenberg said.
"We believe that investors were sceptical about the company's ability to deliver on the divestments in the near-term given the somewhat challenging market conditions," the broker added.
BP - which is "reshaping" - said it has other opportunities, both in the US and around the world, that are more coherent with its long-term strategy.
The total price comprises 4 billion dollars payable up front and 1.6 billion dollars through an earnout thereafter.
The BP share is up 1.4% at 495 pence in London this morning.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
6 billion dollars.
The sale includes BP's upstream and midstream business, including BP Exploration Alaska, which owns all of BP's upstream oil and gas interests in Alaska, as well as its pipelines.
The deal is part of BP's plan to divest 10 billion dollars of assets over 2019 and 2020.
"This is an important step in the near-term equity story for BP and will help to drive gearing back towards target levels," analysts at Berenberg said.
"We believe that investors were sceptical about the company's ability to deliver on the divestments in the near-term given the somewhat challenging market conditions," the broker added.
BP - which is "reshaping" - said it has other opportunities, both in the US and around the world, that are more coherent with its long-term strategy.
The total price comprises 4 billion dollars payable up front and 1.6 billion dollars through an earnout thereafter.
The BP share is up 1.4% at 495 pence in London this morning.
Copyright (c) 2019 CercleFinance.com. All rights reserved.